Providence, R.I.-based Lifespan saw its net income dip in the three months ended June 30 when compared to the same period a year prior.
The five-hospital nonprofit system posted third-quarter net income of $8 million, down 26.8 percent from $11 million in the third quarter of 2017, according to unaudited financial documents. The system recorded a $657,000 nonoperating loss in the third quarter of 2018, compared to a $3.4 million nonoperating gain in the same quarter of last year.
Lifespan's total operating expenses increased 5.9 percent year over year to $490.6 million. Increases in compensation and benefits, including 316 additional full-time equivalent employees, as well as supply costs, inflated the system's third-quarter expenses. Lifespan also reported third-quarter operating income of $8.7 million, up from $7.6 million in the same period in 2017.
Lifespan saw total revenue increase 6 percent year over year to $499.3 million in the third quarter of 2018. The health system pointed to a $22 million, or 5.1 percent, increase in net patient service revenue as a contributor. Other factors, such as an increase in patient stays and rate increases, partially offset changes in payer mix and lower state disproportionate share revenue.
For the nine months ended June 30, Lifespan reported net income of $22.6 million. That's down from $25.6 million reported in the same period a year prior.
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