Catholic Health Initiatives, a nonprofit, faith-based health system headquartered in Englewood, Colo., reported improved financial performance in the second quarter of its fiscal year, which ended Dec. 31, 2014.
The system posted a $419.9 million operating surplus on $4.4 billion in revenue in the second quarter, a significant improvement over the $53.6 million operating loss on $3.5 billion in revenue it reported in the same period of the preceding year.
The system's revenue growth was attributable largely to its acquisition of Toledo, Ohio-based Sylvania Franciscan Health and Bismarck, N.D.-based St. Alexius Medical Center.
The system also credited its financial turnaround to a number of internal cost-saving programs that are aimed at reducing expenses related to travel, consulting contracts and administrative services.
The system's total admissions were up 7.4 percent in the second quarter. However, on a same-hospital basis volume was down.
"We think these improved numbers reinforce our long-term strategies to make the kinds of investments necessary to position CHI for the change in delivery and payment models that have come as a result of the Affordable Care Act," said Dean Swindle, CHI's president for enterprise business lines and CFO. "The financial improvement in the second quarter is a big step in the right direction, but we still have a lot of work ahead to ensure that the positive financial results are sustainable well into the future."
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