Advocate Health Care, a 12-hospital system based in Downers Grove, Ill., saw its financial position improve in 2017, according to recently released bondholder documents.
The system ended 2017 with revenues of $6.2 billion, up from $5.6 billion in the year prior. Advocate saw net patient service revenue drop 6 percent year over year, but that decline was offset by an increase in capitation revenue, which nearly doubled year over year.
After factoring in an increase in expenses, Advocate ended 2017 with operating income of $219.7 million. That's down 16 percent from operating income of $263.6 million in 2016.
Fueled by strong investment gains, Advocate's net income climbed 36 percent year over year to $811.3 million in 2017.
In December 2017, Advocate entered into a definitive agreement to merge with Milwaukee-based Aurora Health Care. The combined system, called Advocate Aurora Health, would include 27 hospitals, have annual revenues of about $11 billion and serve nearly 3 million patients each year. The parties expect the transaction to close in late March or early April.
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