Denver system’s revenue up, operating income down
SCL Health System, which has pruned its portfolio of hospitals during the past year, reported an increase in 2013 revenue but lower operating income because of higher expenses.
In a financial filing for its fiscal 2013, ended Dec. 31 Denver-based SCL reported a surplus (which includes returns on financial assets), of $188.6 million on revenue of $2.3 billion. That represented an improvement from a surplus of $180.6 million on revenue of $2.2 billion the prior year.
However, operating income fell to $41.4 million in 2013 from $56.7 million the previous year as salaries, benefits and other expenses increased. Higher investment income offset the decline.
The Catholic system closed a deal in April 2013 to sell two of its Kansas hospitals to for-profit chain Prime Healthcare Services. Six months later, SCL entered into an agreement to transfer sponsorship of St. John’s Health Center in Santa Monica, Calif., to Providence Health & Services in a $125 million deal.
The system saw an 8.7% increase in patient service revenue from Medicaid and a 12% increase in revenue from managed-care and commercial plans. Revenue from self-pay patients also increased 13.2%, and the system provided more charity care and recorded higher write-offs from bad debt. Admissions fell 4.2% year over year.