Norton Healthcare, based in Louisville, Ky., recorded $59.2 million in operating profit in fiscal year 2013 — triple its operating profit from 2012 — even though its electronic health record system installation has been costly through its first two years.
In 2012, Norton switched to an Epic EHR system. The total costs of the EHR implementation thus far have equaled $79.7 million ($37.6 million last year and $42.1 million in 2012). All five Norton hospitals and six Norton Medical Group practices have fully converted to the system.
Norton CFO Michael Gough said in a report the health system was able to weather the EHR storm due to "improved investment results" and decent revenue growth. Norton's revenue in 2013 totaled $1.69 billion, up slightly from $1.67 billion in 2012. He attributed part of the revenue growth to reimbursement rate increases from commercial payers, robust physician recruitment and sizable growth in volumes at Norton Brownsboro Hospital in Louisville.
Other key financial data Norton reported in FY 2013:
• Norton is one of the many health system owners of Premier, a group purchasing organization that went public last year. Norton raked in $14.3 million from Premier's initial public offering.
• Days cash on hand improved from 191 in 2012 to 220, as of Dec. 31, 2013.
• Labor and benefits costs rose 3 percent to $917.8 million, while drug and supply costs rose 2 percent to $333.3 million.
• Total profit, including nonoperating gains like the Premier IPO proceeds, totaled $57.3 million, almost identical to 2012.
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