Evanston, Ill.-based NorthShore University HealthSystem saw revenue increase in fiscal year 2019 but ended the year with an operating loss, according to unaudited financial documents.
NorthShore, a four-hospital system, recorded revenue of $2.23 billion in the fiscal year ended Sept. 30, up from $2.08 billion in the year prior. Total net patient service and premium revenue climbed more than 7 percent year over year to $2.16 billion.
The health system's expenses totaled $2.15 billion in the most recent fiscal year, up 6 percent from fiscal 2018. NorthShore saw expenses increase across all categories, including supplies and salaries and benefits.
NorthShore ended fiscal 2019 with an operating loss of $31.8 million, compared to operating income of $52.45 million a year earlier. The operating loss was attributable to a one-time goodwill impairment charge of $116.39 million. Excluding the one-time charge, NorthShore's operating income climbed 61 percent year over year.
The health system performs an annual assessment of several variables, including market conditions, overall financial performance and cost factors, to determine whether its fair value exceeds its carrying value. NorthShore recorded the $116.39 million impairment charge in fiscal 2019 because its fair value failed to exceed its carrying value. The system did not record an impairment charge in the year prior.
After factoring in nonoperating income, NorthShore reported net income of $14.68 million in fiscal 2019, down 91 percent year over year.
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