Trinity Health reports $2.7B net income over 6 months

Trinity Health reported higher revenue, operating income and net income in the final six months of 2020 than in the same period a year earlier, according to financial documents released March 6. 

Trinity posted revenue of $10.3 billion in the six months ended Dec. 31, up 5.9 percent from $9.7 billion in the same period of 2019. The health system attributed the increase to $534.2 million in provider relief grants recognized. Excluding those grants, revenue increased less than 1 percent year over year, the health system said. 

"Operating revenue has continued to be negatively impacted by volume declines related to the COVID-19 pandemic," Trinity said. "Volume declines and payer mix declines were partially offset by payment rate increases and improvements in case mix impacted by both COVID-19 patients as well as declines in lower acuity non-COVID-19 volumes." 

The health system's expenses decreased by $35.9 million year over year in the six months ended Dec. 31. The decline was attributed to several factors, including labor cost controls. The decrease was partially offset by higher supply costs driven by pandemic-related personal protective equipment, lab and drug costs, the health system said. 

Trinity Health reported operating income of $710.6 million in the six months ended Dec. 31, compared to $102.6 million in the same period a year earlier. Excluding provider relief grants, the system's operating margin was 1.8 percent in the final six months of 2020, up from 1.1 percent in the same period of 2019. 

After factoring in investments and other nonoperating items, Trinity Health posted net income of $2.7 billion, up from $805 million in the same period of 2019. Higher nonoperating gains in the last six months of 2020 were due to higher investment earnings driven by global market conditions, the system said. 

 

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