For Arlington-based Texas Health Resources, 2013 was a very profitable year, as the massive health system posted $319.3 million of operating income — a 10.6 percent jump from 2012.
Revenue at THR increased to $3.85 billion, resulting in an 8.3 percent operating margin. THR's operating margin was 7.8 percent in 2012. A majority of the system's net patient service revenue came from managed care contracts and other commercial payers. Medicare and Medicaid only represented 34.3 percent of THR's patient revenue last year.
In addition to highly profitable operations, THR recorded large gains in investment income. THR's total profit soared 63.8 percent to $704.6 million. Realized and unrealized gains on investments equaled more than $448 million last year.
Texas Health Resources is one of the largest faith-based, nonprofit health systems in Texas. The system owns, operates or has joint ventures with 17 acute-care hospitals, six short-stay hospitals and 15 outpatient surgery centers. THR's assets totaled more than $6.1 billion at the end of 2013.
The 2014 fiscal year will be the last for Douglas Hawthorne, as he will step down as CEO by the end of the year, a position he has held since 1997 when the system was created.
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