Allina Health's revenues increased in the first quarter of 2018, but the Minneapolis-based system's net income plummeted due to a significant drop in investment income.
Allina reported revenues of $1.05 billion in the first quarter of this year, up from $995.7 million in the same period of 2017, according to recently released bondholder documents. The boost was attributable to higher net patient service revenue, which climbed 5.8 percent year over year.
The system's operating expenses totaled $1.04 billion in the first quarter of 2018, up from $987.4 million in the same period a year earlier.
Allina ended the first quarter of this year with operating income of $9.4 million. That's compared to the first quarter of 2017, when the system reported operating income of $8.3 million.
Allina reported an investment return of $51 million in the first quarter of 2017, but the system recorded a $7.1 million loss on investments in the first quarter of this year.
After factoring in the drop in investment income, Allina's net income tumbled 83 percent year over year to $9.7 million in the first quarter of 2018.
More articles on healthcare finance:
How CHS, Tenet, HCA, LifePoint and UHS fared in Q1
CHI's operating loss widens in Q3, but finances improve over longer term
8 health systems with strong finances