Livonia, Mich.-based Trinity Health reported a 47.3% year-over-year increase in net income to $1.3 billion for the nine months ending March 31, 2024, according to financial documents published May 17.
The 88-hospital system saw significant improvements in operating performance, with operating income of $69.8 million (0.4% margin) for the nine months ending March 31, compared to a $263.1 million operating loss (-1.6% margin) for the prior-year period.
Improvements were achieved in payment rates, same facility patient care volume growth and as a result of several revenue and cost management initiatives.
Trinity reported 11.4% year-over-year growth in operating revenue to $17.8 billion while operating expenses grew by 9.1% to $17.7 billion.
The system continues to use strong cost controls over contract labor and other operational spending. Labor stabilization investments include its FirstChoice internal staffing agency and TogetherTeam Virtual Connected Care model. On a same facility basis, contract labor costs decreased $71.3 million, or 25% compared to the prior fiscal year.
Trinity said its "balance sheet remains strong" after prompt responses to negative effects from the Change Healthcare cyberattack that occurred in February.
"While the attack did not directly impact the corporation's systems, the event disrupted the billing and collection of patient accounts receivable that grew $896.8 million as of March 31, 2024 compared to June 30, 2023, or a 19-day use of cash," management said in a summary of the latest financial results. "Responses included a $600 million draw on liquidity facilities and receipt of Medicare cash advances, amongst others. As of March 31, 2024, days cash of 173 days declined 4 days since June 30, 2023."