Palo Alto, Calif.-based Stanford Health Care reported $414.9 million in operating income for the year ended Aug. 31, a 20% drop from the $518.1 million gain it posted last year.
Revenue for the 12-month period increased 6.2% year over year to $7.9 billion while expenses rose 8.2% to $7.5 billion. Under expenses, salaries and benefits increased 6.9% to $3.6 billion and supplies rose 16% to $1.2 billion, according to recently published financial documents.
After factoring in nonoperating items, the health system reported a net income of $780.6 million during the 12 months ending Aug. 31, compared to an overall gain of $395.5 million in the previous year.
Stanford Health has an "AA" rating and stable outlook with Fitch Ratings. The health system's rating is supported by its extensive clinical reach in the greater San Francisco and Central Valley regions and destination position for extremely high-acuity services, according to the rating agency.