Midland-based MidMichigan Health's operating performance increased in the quarter ended Sept. 30 as revenue improved, according to a recent financial filing.
The nonprofit health system reported operating income of $5 million in the first quarter of fiscal year 2019, compared to a $1.6 million operating loss in the same three-month period last year. Its operating revenue rose 18.8 percent year over year, from $197.2 million to $234.3 million.
MidMichigan Health partially attributed the operating performance increase to more patient volume. The system said its net patient service revenue increased 19 percent, or $36.3 million, year over year, largely due to more patient activity and the acquisition of West Branch (Mich.) Regional Medical Center.
At the same time, expenses increased 5.4 percent year over year to $229.3 million, up from $198.7 million. MidMichigan Health attributed the expense growth to its West Branch acquisition and a general increase in salaries associated with patient activity, higher pharmaceutical and patient-related costs; and higher consulting costs related to revenue cycle and cost structure.
After factoring in nonoperating items, including a $22.2 million unrealized investment return, the system ended the quarter with net income of $19 million, up from net income of $17.6 million in the same quarter of 2017.
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