Downers Grove, Ill.-based nonprofit Advocate Health Care improved its operating margin in the year ended Dec. 31, 2014. However, a decrease in investment income caused the system's excess of revenue over expenses to fall to $369.6 million, down from $765.3 million in the previous year.
The 12-hospital system posted an operating surplus of $330.6 million on $5.2 billion in revenue in 2014. In 2013, Advocate reported an operating surplus of $300.2 million on $4.9 billion in revenue.
Due to the implementation of the Patient Protection and Affordable Care Act and Medicaid expansion in Illinois, Advocate experienced a shift in payers from self-pay to Medicaid and Medicaid managed care. The payer shift caused the system to provide less charity care, falling from $467.9 million in 2013 to $272.3 million in 2014.
Like other systems, such as Danville, Pa.-based Geisinger Health System and Livonia, Mich.-based Trinity Health, Advocate suffered a hit on its investments in 2014. The system's investment income fell to $136.9 million from $287.7 million the previous year.
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