Albany, Ga.-based Phoebe Putney Health System reported operating income of $0.9 million in the third quarter of fiscal year 2017, down from $1.4 million recorded in the same period a year prior, according to recent financial statements.
The health system cited a year-over-year decline in net revenue of $2.9 million as a contributor to the dip in third quarter operating income. Phoebe Senior Vice President and CFO Brian Church attributed declining revenue to a year-over-year decrease in inpatient volumes, and a migration of outpatient surgical cases to area ambulatory surgery centers.
Despite a decrease in patient volumes, the health system saw patient revenue reach $513.1 million in the third quarter of fiscal year 2017, up from $492.5 million in the third quarter of last year. However, the health system's net revenue decreased slightly from $172.8 million in the third quarter of fiscal year 2016 to $169.9 million in the same period this year.
Phoebe Putney Health saw expenses decrease during the third quarter of 2017. The health system reported expenses of $169 million in the third quarter of this year, down year over year from $171.4 million.
Phoebe Putney Health ended the third quarter of this year with net income of $25.3 million, up from $15.1 million in the same period of 2016. Year-to-date, Phoebe has recorded $9.6 million in operating income, up from a $2.3 million operating loss in the same period a year prior. The health system attributes the financial gain to improved operations following its Epic EHR integration in October of fiscal year 2016, and a revenue cycle improvement project launched in December 2016.
Editor's note: This article was updated June 28, 2017, at 9:32 a.m. to include year-to-date financials.