Worcester, Mass.-based UMass Memorial Health Care saw revenue increase in fiscal year 2017, but operating income dipped amid lower capacity during capital improvements, according to a Worcester Business Journal report.
UMass Memorial recorded revenue of $2.45 billion in fiscal year 2017, up 3.1 percent from $2.37 billion the year prior. The growth was partially driven by a slight increase in patient service revenue, which grew from $2.31 billion in fiscal year 2016 to $2.37 billion in the fiscal year ended Sept. 30, according to recently released bondholder documents.
The system's revenue gains were tempered by lower capacity during renovations at UMass' University and Memorial hospital campuses in Worcester, CFO Sergio Melgar said, according to the Worcester Business Journal. The report states the system is in the process of a $200 million capital renovation initiative, which includes adding more single-bed rooms at the campuses, as well as a $37-million expansion of Leominster, Mass.-based UMass Memorial-HealthAlliance Hospital's emergency department.
The system's revenue gains were offset by higher expenses in fiscal year 2017. UMass Memorial's expenses climbed 4.4 percent year over year to $2.44 billion.
The system ended the most recent fiscal year with operating income of $10.6 million, down 74 percent from $40.7 million in fiscal year 2016.
The report notes the system also recently rolled out a new Epic EHR system. The $700 million investment is expected to be paid out over a decade.
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