Fall­ing ex­penses help Kaleida post higher sur­plus

Modern Healthcare - - REGIONAL NEWS - —Bob Her­man

Kaleida Health kept ex­penses in check in the first half of 2014, giv­ing the Buffalo, N.Y.-based sys­tem high­erthan-ex­pected sur­pluses.

Last year, Kaleida, which in­cludes three acute-care hos­pi­tals, strug­gled to con­trol ex­pen­di­tures, specif­i­cally la­bor costs and sup­plies, which re­sulted in a $15.3 mil­lion loss from op­er­a­tions. The trend was seen across the in­dus­try, as many not-for-prof­its tal­lied lower op­er­at­ing mar­gins.

So far in 2014, Kaleida’s ex­penses de­clined 1.6%, most no­tably in em­ployee salaries and sup­plies. Op­er­at­ing rev­enue, mean­while, grew 0.7% to $637.9 mil­lion in the six­month pe­riod that ended June 30. That re­sulted in an op­er­at­ing sur­plus of $5.9 mil­lion—more than dou­ble what Kaleida ex­ec­u­tives bud­geted for the first half of 2014 and a vast im­prove­ment from the $8.7 mil­lion op­er­at­ing loss in the same six-month pe­riod last year.

In­clud­ing in­vest­ment gains, Kaleida’s sur­plus in the first half to­taled $19.9 mil­lion com­pared with a $5.5 mil­lion net loss in the first six months of 2013.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.