Oregon system’s investment losses offset solid 2018 earnings

Bend, Ore.-based St. Charles Health System posted solid earnings in 2018, but stock market losses were a drag on the nonprofit hospital system’s financial performance, according to financial documents cited by The Bulletin.

St. Charles reported net operating income of $24 million on revenue of $772 million in 2018. That's compared to 2017, when the system recorded operating income of $24 million on revenue of $749 million.

“If you look at those numbers, they’re rock stable,” Martin Arrick, managing director at Standard & Poor’s, a financial services firm, told The Bulletin. “They’re doing a great job with the things they can control.”

The publication notes that St. Charles was able to successfully transition to a new electronic records system for its hospitals and outpatient clinics last year and reinvested $60 million in facilities.

Still, the system ended 2018 with a net loss of $5 million after factoring in a $23 million investment loss and other adjustments.

But St. Charles has reportedly started to rebound financially this year and is aiming for a 3 percent operating margin for 2019.

 

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