Minneapolis-based Fairview Health Services saw net income fall 71.3 percent for the three months ended March 31, to $23.4 million, compared to $81.5 million in the same quarter a year prior.
The 12-hospital nonprofit system largely attributed the decrease to higher flow-through of net operating income and negative investment income of $9 million in the first quarter of this year, according to recent unaudited bondholder documents. That's compared to investment income of $57.3 million in the same period a year before.
Fairview Health Services posted net operating income of $24.5 million for the first quarter of this year, up slightly from $23.9 million in the first quarter of last year. The system said the increase in net operating income largely reflected higher inpatient and outpatient volumes, mostly driven by its acquisition of St. Paul, Minn.-based HealthEast System, and a surge in flu-related services.
Fairview Health Services saw total operating revenue climb 21.1 percent year over year to $1.4 billion, up from $1.1 billion in the same period a year prior. The system also posted total expenses of $1.4 billion, up 21.5 percent compared to the same period a year prior.