Washington, D.C.-based Howard University Hospital recorded a $4.3 million net operating surplus in fiscal year 2016, compared to a $19.1 million operating loss the year prior.
The hospital's finances were boosted by an increase in patient service revenue, which grew to $233 million in FY 2016, up 8 percent from FY 2015. Operating expenses were $238 million, down 8 percent from the year prior.
HUH's previous profitable year was 2012. In October 2014, Howard University, the licensed operator of HUH, entered into a management services agreement with Segundo, Calif.-based Paladin Healthcare. The hospital said the collaboration brought new senior leaders and other managers who took over day-to-day hospital operations under the joint oversight of Howard University and Paladin Healthcare management.
"Over the past two years, Howard University and Paladin Healthcare have embarked on a large-scale strategic restructuring plan for the hospital," Howard University President Wayne A. I. Frederick, MD, said in a statement. "Today, Howard University Hospital is emerging as a stronger institution. We will always be grateful to the people of the District of Columbia and to our employee groups for helping us preserve top-quality care to the community we serve."
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