Ochsner Health grows operating margin to 2.7% with $101.5M gain

New Orleans-based Ochsner Health posted an operating income of $101.5 million (2.7% margin) for the six months ended June 30, a significant increase from the $28.2 million operating gain (0.8%) margin reported in the same period last year. 

Revenue for the six-month period increases 7.8% year over year to $3.8 billion, according to financial documents published Aug. 14. Patient service revenue rose 4.2% to $2.5 billion, primarily due to increased average daily census and clinic visits. 

Expenses for the six months ending June 30 increased 5.8% year over year to $3.7 billion. Salaries and wages were $1.6 billion, a 3.8% increase over the prior-year period, which was primarily attributed to wage inflation and increased providers to meet patient demand. 

As of June 30, 2024, Ochsner had unrestricted cash and investments of $2.2 billion, which equates to 112 days cash on hand. This is down slightly from 116 days cash on hand on December 31, 2023. 

After factoring in nonoperating items, such as investment returns, the health system reported a net income of $148.7 million for the six months ended June 30, compared to a net income of $81.1 million for the same period in 2023. 

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