Texas Children's Hospital, a nonprofit hospital based in Houston, saw revenues and operating income increase in the first six months of fiscal year 2018.
The hospital reported revenues of $1.9 billion in the six months ended March 31, up from revenues of $1.7 billion in the same period a year earlier, according to recently released unaudited financial documents. Texas Children's net patient service revenue was nearly flat year over year, but its premium revenue grew 15 percent to $834 million.
On March 2, the United States District Court for the District of Columbia vacated a recent CMS rule that allowed the agency to include private insurance payments in the calculation that determines the amount hospitals are eligible to receive in supplemental Medicaid funding, even when Medicaid doesn't pay for the patient's care. Based on the judgment, Texas Children's recognized reimbursements that increased operating revenues by $45 million in the first six months of fiscal year 2018.
The hospital's expenses also increased in the first half of the current fiscal year. Texas Children's reported operating expenses of $1.9 billion for the six months ended March 31, up from $1.7 billion in the same period of fiscal year 2017.
Texas Children's ended the first six months of fiscal year 2018 with operating income of $81.3 million, up from $28.5 million in the same period a year earlier.
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