Trinity Health saw revenue increase in fiscal year 2016, but higher expenses caused the Livonia, Mich.-based system's operating margin to decline.
Trinity reported revenue of $16.3 billion in FY 2016, a 14 percent year-over-year increase from revenue of $14.3 billion in FY 2015, according to recently released audited financial documents.
Higher expenses offset the system's revenue growth. Trinity reported operating expenses of $16.2 billion in FY 2016, up 16.7 percent from FY 2015. The system's acquisitions of Syracuse, N.Y.-based based Saint Joseph's Hospital Health Center and Hartford, Conn.-based Saint Francis Care accounted for $1.4 billion, or 10.3 percent, of the year-over-year growth in expenses. Trinity also reported higher costs related to salaries and wages, supplies and purchased services.
The system ended FY 2016 with operating income of $46.4 million, down from $457.7 million in the year prior. Excluding asset impairment charges and a premium revenue adjustment, Trinity recorded operating income of $151.3 million in FY 2016, down from operating income of $470 million in FY 2015. Trinity recorded an operating margin of .9 percent in the most recent fiscal year, compared to an operating margin of 3.3 percent in FY 2015.
More articles on healthcare finance:
AHA asks judge to require HHS to resolve Medicare appeals backlog
This week's 5 must-reads for hospital CFOs
CFO roundtable: 3 finance leaders on clinical staffing, retention issues