Dearborn, Mich.-based Beaumont Health and Detroit Medical Center recorded their strongest profits to date in 2015, which are partially attributable to merger activity and the state's decision to expand Medicaid, The Detroit News reports.
Beaumont reported net income of $301.6 million in 2015, up from $276 million the year prior, according to the Michigan Health Market Review 2016. DMC recorded net income of $133.7 million in 2015, up from $45.3 million in 2014.
"Taking the Detroit hospitals as a group ... in 2013 they had a loss on their patient care operations of $278.1 million and they turned that around to a profit of $132.6 million in 2015," Allan Baumgarten, author of the hospital market review, told The Detroit News. "That's a swing of about $411 million in a two-year period."
Mr. Baumgarten partially attributed Beaumont's strong profits to the merger that created the 8-hospital system, which joined Royal Oak, Mich.-based Beaumont Health System; Farmington Hills, Mich.-based Botsford Hospital; and Dearborn, Mich.-based Oakwood Healthcare, according to the report.
The study author also pointed to Beaumont's presence in Detroit's more affluent and insured suburbs, where patients tend to be healthier. The five-hospital DMC system, a subsidiary of Dallas-based Tenet Healthcare, also gained from Michigan's decision to expand Medicaid coverage under the ACA, the report states.