Catholic Health Initiatives, a nonprofit 103-hospital system based in Englewood, Colo., saw revenues increase in fiscal year 2017 but ended the period with an operating loss, according to recently released bondholder documents.
CHI said operating revenues climbed to $15.5 billion in fiscal year 2017, which ended June 30, up from $15.2 billion in the year prior. The increase was largely attributable to higher net patient service revenue, which grew 4.4 percent year over year to $14.5 billion in fiscal year 2017.
After factoring in expenses and one-time charges, CHI ended the most recent fiscal year with an operating loss of $585.2 million, compared to an operating loss of $371.4 in fiscal year 2016.
Fueled by an increase in investment gains, CHI recorded a net surplus of $128.4 million in fiscal year 2017, compared to a net loss of $575.6 million in the year prior.
CHI said it continues to make progress in efforts to turn around its finances, including entering into an agreement to sell the Medicare Advantage part of its health insurance subsidiary, QualChoice. The company, which announced plans in 2016 to exit the health insurance business, expects to complete the sale in fiscal year 2018.
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Editor's note: This story was updated Sept. 18 to reflect that CHI has received a letter of intent to sell only the Medicare Advantage part of its health insurance subsidiary.