Palmetto Health, a seven-hospital system based in Columbia, S.C., ended fiscal year 2017 with a $43.8 million operating loss, which is down from an operating surplus of $17.9 million the year prior, according to recently released bondholder documents.
Here are five things to know.
1. Palmetto recorded revenue of $1.702 billion in fiscal year 2017, up 6.1 percent from the 1.605 billion recorded in fiscal year 2016.
2. The gains in revenue are largely due to a merger, which was finalized in January 2016, of Palmetto Health and Sumter S.C.-based Tuomey Healthcare. Under the agreement, Toumey became Palmetto Health Tuomey. Hospital management said the addition of Palmetto Health Tuomey added incremental revenue in the fiscal year ended Sept. 30, 2017.
3. Additionally, Palmetto's net patient service revenue climbed 7.47 percent in fiscal year 2017.
4. The system's expenses also increased, rising 10 percent to $1.746 billion. Operating expenses primarily increased due to salaries and benefits, along with supply needs and other expenses related to integrating Palmetto Health Tuomey.
5. Hospital administrators said the operating loss is primarily a result of increased expenses.