Bronx, N.Y.-based Montefiore Health System posted strong financial results in the second quarter of fiscal year 2018.
The 11-hospital system, which includes Montefiore Medical Center, recorded revenue of 2.9 billion in the six months ended June 30, according to recently released unaudited financial documents. That's a 7.2 percent increase year over year, attributable to higher net patient service revenue.
Montefiore Health System also saw expenses climb in the second quarter of 2018. Expenses rose to $2.9 billion compared to $2.7 billion in the same period of the year prior.
The system ended the first six months of 2018 with operating income of $48.5 million, a 58 percent jump from operating income of $30.7 million in the same period last year.
After including nonoperating gains, Montefiore Health System recorded net income of $92.9 million for the second quarter of 2018, up 72 percent year over year from net income of $53.9 million. The increase is largely attributable to a one-time malpractice adjustment of $42 million.
Officials told Becker's the second-quarter financial results represent an operating margin of 1.7 percent, compared to an operating margin of 1.1 percent for the same period last year, which allows it to make capital improvements and meet debt covenants. They also said the system recently began talks with rating agencies "to prepare for receipt of its investment grade rating on three different bond series which were based on our own credit. The bond rating went into effect in August, and the financing will restructure most of Montefiore Medical Center's existing debt and refinance strategic investments made over the last several years."
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