St. Louis-based Mercy posted an operating income of $114.7 million through the first nine months of fiscal 2024, up from an operating loss of $84.4 million over the same period last year, according to its June 14 financial report.
The system had an operating margin of 1.7% for the nine months ended March 31, compared to a -1.4% margin over the same period last year, according to the report.
Total operating revenues increased 14.8% year over year to $6.8 billion. Patient service revenues also increased 14.8% to $6.2 billion, which Mercy attributed to higher volumes and contracted rate improvements. Total patient discharges were 16.5% higher than last year.
Operating expenses increased 11.2% year over year to $6.6 billion. Salaries and benefits increase 10% year over year to $3.8 billion, which Mercy attributed to wage inflation, offset by a decrease in premium labor costs. Supplies and other expenses increased 12.4% year over year to $2.4 billion. Mercy attributed that increase to volume increases, as well as higher medical supply and drug costs as a result of changes in patient acuity/service mix.
Mercy posted a net income of $434.9 million, up from a net income of $11.9 million over the same period last year.