Allina Health ended the fourth quarter of 2019 with higher revenue and operating income than in the same period a year earlier, according to unaudited financial documents released Feb. 14.
Allina's revenue climbed 3.8 percent year over year to $1.2 billion in the fourth quarter of 2019. The health system's expenses increased less than 1 percent year over year to $1.1 billion in the quarter ended Dec. 31.
Allina ended the fourth quarter of 2019 with operating income of $78.8 million, more than double its operating income of $37.3 million in the fourth quarter of 2018.
"Allina Health is focusing on disciplined management of productivity, operating expenses and length of stay to meet financial targets to allow for reinvestment in care," reads management's commentary accompanying Allina's financial results. "Several activities to optimize operations were executed in the last half of 2019, which resulted in favorable results for the fourth quarter."
After factoring in nonoperating items, including an $82 million gain on investments, Allina's net income climbed to $159.6 million in the fourth quarter of 2019. In the same period of 2018, Allina recorded an $81 million loss on investments and a $56.5 million net loss.
Looking at full-year 2019 results, Allina's revenue increased 2 percent and its operating income declined 27 percent to $62.6 million. The health system said lower patient volume was one of the factors that pulled down operating income in 2019. Inpatient admissions, inpatient surgeries and outpatient hospital admissions each declined less than 1 percent year over year. Outpatient surgeries were down 1.9 percent.
Fueled by strong investment gains, Allina's net income climbed from $22 million in 2018 to $302 million in 2019.