Froedtert ThedaCare reports 3% operating margin

Milwaukee-based Froedtert ThedaCare Health posted an operating income of $111.6 million (3% margin) in the nine months ending March 31,compared to $40.3 million (1.5% margin) in operating income during the same period the previous year. 

Revenue for the 18-hospital system, which was formed when Froedtert Health merged with Neenah, Wis.-based ThedaCare Jan. 1, increased 38.3% year over year to $3.67 billion. Expenses grew by 36.6% year over year to $3.56 billion, with labor costs increasing 21% to $1.53 billion, according to financial documents published May 30. 

After accounting for nonoperating items, such as investment returns, Froedtert ThedaCare reported $1.9 billion in net income for the nine months ending March 31, compared to $164.7 million in the prior-year period. 

Hospital inpatient activity, as measured by admissions at Froedtert ThedaCare's affiliated hospitals for the nine months ended March 31, 2024, increased 16.7% from the comparable period in 2023. This increase in visits over the prior year is primarily due the combination of Froedtert Health and ThedaCare. 

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