Bon Secours expenses flat as revenue growth stagnates
Bon Secours Health System ended the year profitably, despite almost no revenue growth as the system held down operating expenses across more than a dozen hospitals.
The Marriottsville, Md.-based health system has in recent years invested to adopt electronic health records and expand its ambulatory reach, and that’s created disruption and caused financial strain.
Physician hiring added to the 13-hospital system’s labor expense, but for the year that ended Aug. 31, the system held growth of total operating expenses to less than 1%. Expenses rose to $3.36 billion from $3.34 billion in the prior year.
Revenue also grew less than 1%, though slightly slower than expenses, and Bon Secours ended the year with an operating margin of 3.3%.
That’s compared with the system’s 3.6% operating margin for the prior year.
The system reported an operating surplus of $116 million on revenue of $3.48 billion last year, compared with a 2014 surplus of $123.6 million on revenue of $3.46 billion.
Net surplus, however, dropped by more than 50% because of a decline in investment income.
The system reported net surplus of $78.8 million, compared with $174.8 million the prior year.