Houston-based Texas Children's saw revenues and operating income increase in the first nine months of fiscal year 2018, according to recently released unaudited financial documents.
Texas Children's reported revenues of $2.9 billion in the nine months ended June 30, up from revenues of $2.6 billion in the same period a year earlier. The hospital's net patient service revenue was nearly flat year over year, but its premium revenue grew 13.5 percent to $1.3 billion.
On March 2, the United States District Court for the District of Columbia vacated a 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 nine months of fiscal year 2018.
The hospital's expenses also increased in the first nine months of the fiscal year. Texas Children's reported operating expenses of $2.8 billion for the nine months ended June 30, up from $2.6 billion in the same period of fiscal year 2017.
Texas Children's ended the first nine months of fiscal year 2018 with operating income of $105.8 million, up 448 percent from $19.3 million in the same period a year earlier.
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