Trinity Health recorded higher revenue in the first nine months of fiscal year 2019 than in the same period of the year prior, but the Livonia, Mich.-based health system ended the first three quarters of the current fiscal year with lower operating income, according to unaudited financial documents.
During the first nine months of fiscal 2019, Trinity reported operating revenue of $14.3 billion, a 5.4 percent increase over the same period a year earlier. The boost was partially attributable to Trinity's acquisition of MacNeal Hospital in Berwyn, Ill., from Dallas-based Tenet Healthcare. Trinity said the Illinois hospital generated $230.2 million in the nine months ended March 31. Growth in patient volumes and payment rates also helped push Trinity's revenue higher.
Increases in operating expenses outpaced Trinity's revenue growth. Expenses climbed 6.1 percent year over year to $14.1 billion in the first nine months of fiscal 2019. The MacNeal Hospital acquisition accounted for 1.8 percent of the increase. The remaining growth was primarily due to higher labor and supply costs.
Trinity ended the first nine months of fiscal 2019 with operating income of $155.7 million down 44.5 percent from $280.6 million in the same period of the year prior. Excluding $35.2 million in restructuring costs related to consolidation of revenue cycle billing services and severance benefits, Trinity's operating income declined 32 percent year over year.
After factoring in nonoperating items, including a decline in investment returns due to turbulent financial markets, Trinity reported net income of $457.9 million in the first nine months of fiscal 2019. That's compared to the first nine months of fiscal 2018, when the system posted net income of $914.8 million.
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