York, Pa.-based WellSpan Health reported operating income of $81.1 million for the third quarter of fiscal 2015, up 115 percent from the same period a year ago, but the system took a hit on its investments causing its net income to plummet.
The system posted revenue of $1.2 billion for nine month period that ended March 31, up from $1 billion in the comparable period a year ago, with net patient service revenue climbing 15.3 percent. This boost is attributable to both volume growth and the inclusion of Ephrata Community Hospital in WellSpan's financial reports beginning Oct. 1, 2013, which was the official date of Ephrata's affiliation with WellSpan.
WellSpan's expenses increased in the third quarter, growing to $1.1 billion, up from $1 billion in the same period of 2014. The system's expenses related to supplies jumped 17.4 percent to $322.8 million. Like the system's revenue growth, the increase in expenses was primarily attributable to both volume growth and the inclusion of Ephrata in WellSpan's financial reports.
The system took a major hit on its investment in the third quarter, with investment income falling to $3.1 million, down from $93.7 million in the same period a year ago.
WellSpan ended the third quarter with net income of $45.8 million, down from $228.5 million for the comparable period of 2014.
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Editor's note: This article was updated June 1, 2015, to include information related to the Ephrata Community Hospital affiliation and its impact on WellSpan's revenue and expenses.