Winston-Salem, N.C.-based Wake Forest Baptist Medical Center saw revenue increase in the first quarter of fiscal year 2019, but the system ended the period with lower operating income amid rising expenses, according to recently released financial documents.
Wake Forest Baptist, an integrated enterprise that includes a tertiary and quaternary acute care regional referral center with four additional hospital facilities, reported revenue of $772.8 million in the first quarter of fiscal year 2018. That's up 12.5 percent from revenue of $686.8 million in the same period a year prior.
The growth was primarily due to net patient service revenue, which climbed 13.2 percent year over year. Wake Forest Baptist said clinical volume increases in inpatient activity, surgical services, outpatient encounters, professional activity, the addition of High Point (N.C.) Medical Center and yield improvements all contributed to the rise in net patient service revenue.
But the system also saw operating expenses climb. Wake Forest Baptist said operating expenses rose from $681.4 million in the first quarter of fiscal year 2018 to $770.4 million in the first quarter of fiscal year 2019.
Wake Forest Baptist ended the first quarter of fiscal year 2019 with operating income of $2.4 million, a 56 percent decrease from $5.4 million in the same period the year prior.
Once nonoperating gains were factored in, the system reported net income of $34.3 million, compared to net income of $67.3 million it recorded in the first quarter of fiscal year 2018.
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