Livonia, Mich.-based Trinity Health posted an operating income of $36.7 million (0.6% operating margin) in the first quarter of fiscal 2025, up from an operating loss of $58.6 million (-1% margin) over the same period last year, according to its Nov. 22 financial report.
The system reported operating revenue of $6.2 billion for the three months ended Sept. 30, a 10.2% increase over the same period last year. Net patient revenue increased 9.9% year over year to $5.3 billion. The increase in net patient service revenue was attributed to improvement payment rates — which included $132.2 million for new Medicaid provider tax funding in Iowa and Medicaid provider tax rate changes in Michigan — as well patient care volumes and inpatient service mix.
Operating expenses totaled $6.2 billion for the first quarter of fiscal 2025, an 8.4% increase year over year. Salaries and wages rose 7.5% year over year to $2.7 billion, which includes a 3.8% increase in full-time employees and a 3.5% increase in salary rates as Trinity contends with a tight healthcare labor market and wage inflation. Supply costs increased 9.5% year over year to $1.1 billion, driven by rate increases related to drugs, retail pharmacy, surgical supplies and volumes.
Trinity said it is addressing labor shortages through "TogetherTeam Virtual Connected Care," a three-person onsite and virtual nursing initiative that is being implemented systemwide. It has already been implemented in 24 hospitals and 62 nursing units and additional sites will implement the model over the fiscal year.
The system reported 234 days cash on hand as of Sept. 30, compared to 167 on Sept. 30, 2023.
Trinity reported a net income of $586.9 million, up from a net loss of $211.5 million over the same period last year.