Cleveland-based University Hospitals' financial picture improved in the first nine months of this year, according to recently released bondholder documents.
The system said revenues climbed 3.7 percent year over year to $2.9 billion in the nine months ended Sept. 30. The boost was largely attributable to patient volume growth.
The system's expenses also increased. University Hospitals reported expenses of $2.8 billion in the first nine months of 2017, up 4.1 percent from the same period of 2016. Like many health systems across the nation, University Hospitals saw labor costs increase, but the system was pleased with its ability to control expense growth in this area.
"Despite an overall growth in total full-time-equivalent employees of 4 percent coupled with merit raises of 3 percent on average, the system held total labor cost growth to under 4 percent, demonstrating the value of its labor efficiency improvement efforts," University Hospitals stated.
The system ended the first nine months of this year with operating income of $81.6 million, down 7.9 percent from the same period of the year prior.
After factoring in nonoperating revenues, University Hospitals posted net income of $142.8 million in the first nine months of this year. That's nearly double the net income of $76.4 million the system reported in the first nine months of 2016.
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