Southfield, Mich.-based Beaumont Health saw revenue increase in the 2018 fiscal year; however, nonoperating losses dragged down the health system's net income.
Beaumont Health reported total net revenue of $4.8 billion for the fiscal year ended Dec. 31, 2018, according to unaudited financial documents. That's up 8.1 percent from $4.4 billion recorded in fiscal year 2017. The year-over-year change included a gain on the sale of business units.
At the same time, operating expenses also increased. Beaumont reported operating expenses of $4.6 billion in fiscal 2018, up 7 percent from $4.3 billion in fiscal 2017. Beaumont said primary contributors to the increases were nonrecurring legal settlements, planned market adjustments, and staffing and benefit expenses attributable to volume and growth.
Beaumont's net operating income grew by 35.6 percent year over year, from $177.6 million in 2017 to $240.7 million in 2018. Still, nonoperating losses grew to $93.6 million, compared to a nonoperating gain of $147.9 million in 2017. After incorporating nonoperating losses, Beaumont ended fiscal 2018 with net income of $147.1 million, down 54.8 percent from $325.5 million in fiscal 2017.
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