CHE Trinity reports 28% drop in income
Operating income at CHE Trinity Health dropped 28% in the first nine months of fiscal 2014 as the Livonia, Mich.-based Catholic system absorbed charges related to its merger and overvalued property.
CHE Trinity officially merged last May, combining Trinity Health and Catholic Health East into a system with 80-plus hospitals. In the nine months ended March 31, according to recently released unaudited financials, the organization tallied $24.9 million in costs related to the consolidation. Comparatively, merger expenses cost $9.4 million in the first nine months of fiscal 2013.
The system also recorded a $32.7 million impairment charge, as it recorded the value of assets at East Norriton, Pa.based Mercy Suburban Hospital, a 126bed hospital within CHE Trinity’s Mercy Health System. In total, CHE Trinity’s operating surplus was $203.7 million, compared with the proforma figure of $283.6 million in the same period of 2013.