Legacy Health posts an­other year of fi­nan­cial growth

Modern Healthcare - - REGIONAL NEWS - —Bob Her­man

Legacy Health, Port­land, Ore., for­ti­fied its al­ready-sound fi­nan­cial po­si­tion for its fis­cal 2014 as many other not-for­profit hos­pi­tals and health sys­tems strug­gled with their op­er­a­tions last year.

The five-hospi­tal sys­tem re­leased fi­nan­cial state­ments for its fis­cal year ended March 31. Last year, the or­ga­ni­za­tion did not ac­quire any new hos­pi­tals. In­stead, Legacy ap­pears to be ben­e­fit­ting from a grow­ing lo­cal pop­u­la­tion. Port­land’s pop­u­la­tion grew about 4.4% from April 2010 to July 2013, ac­cord­ing to es­ti­mates from the U.S. Cen­sus Bureau.

Legacy posted a $50.1 mil­lion op­er­at­ing sur­plus, a 2% in­crease from 2013, when Legacy re­ported a $49 mil­lion op­er­at­ing sur­plus. To­tal rev­enue rose 8.8% to $1.49 bil­lion for fis­cal 2014 com­pared with $1.37 bil­lion in the pre­vi­ous year. The op­er­at­ing mar­gin in 2014 was 3.4%, com­pared with 3.6% for the prior year.

An­other dif­fer­en­ti­at­ing fac­tor for Legacy was its in­pa­tient busi­ness. Legacy’s dis­charges were prac­ti­cally flat year over year. It has not been un­com­mon for sim­i­larly sized sys­tems to post an­nual dis­charge de­creases of 7% or more.

Legacy’s to­tal sur­plus, in­clud­ing in­vest­ment in­come, rose 7.3% year over year to $95 mil­lion.

Good Sa­mar­i­tan Med­i­cal Cen­ter in Port­land, Ore., is part of five-hospi­tal Legacy Health.

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