While Charlotte, N.C.-based Atrium Health saw improved operating income in the first half of fiscal year 2018, a decrease in the nonprofit health system's nonoperating gains pulled down its net income.
Atrium posted operating income of $141.5 million in the six-month period ended June 30, according to unaudited financial documents. That's up nearly 7 percent from the $132.4 million the system recorded in the same period a year prior. The improved operating performance reflected better commercial and government reimbursement, Atrium said.
The health system also saw operating revenue rise 4.3 percent year over year to $3.1 billion in the first half of this year. Net revenue was up 3.9 percent, primarily due to net reimbursement increases, government payer settlements and growth in patient volumes. In addition, emergency room visits fell 2 percent year over year in the first half of 2018, while medical group urgent care and virtual visits grew 1.9 percent, "suggesting that patients are choosing more appropriate, and affordable, care locations," Atrium said.
Atrium's operating expenses were up 4.2 percent year over year to $3 billion in the first half of 2018. After recognizing a $279.2 million drop in nonoperating gains, Atrium ended the most recent six-month period with $153.2 million in net income, down 63.9 percent from $423.3 million recorded in the same period last year.