Dallas-based Baylor Scott & White Health posted $634 million in operating income (8.3% margin) for the first six months of fiscal year 2024, which ended Dec. 31, 2023, an improvement on the operating income of $561 million (8.2% margin) over the same period of fiscal year 2023.
Total operating revenue increased $730 million (10.6%) to $7.6 billion in the first six months of fiscal year 2024, up from $6.9 billion from the same period in fiscal year 2023, with net patient care revenue and premium revenue key drivers, according to the health system's quarterly report obtained by Becker's.
Patient care revenue increased $528 million, or 9.6%, to $6 billion for the first six months of fiscal 2024, which relates to favorable payer mix and higher volumes.
Baylor Scott & White also saw a $254 million (27.7%) revenue increase to $1.2 billion, up from $917 million for the first six months of the previous fiscal year. The increase was related to higher individual marketplace members in fiscal year 2024, along with routine premium rate customer increases.
Operating expenses increased $657 million, or 10.4%, to $7 billion compared to the first six months of fiscal year 2023. The expenses stemmed from an increase in salaries, wages and employee benefits (7.3%); supplies and other operating expenses (11.1%); medical claims (28.4%); depreciation and amortization (6%); and interest expense (5.9%).
After accounting for nonoperating items, such as investment returns, Baylor posted a net profit of $981 million during the first six months of fiscal 2024, improving on the $653 million gain reported in the prior-year period.