Bon Se­cours ex­penses flat as rev­enue growth stag­nates

Modern Healthcare - - REGIONAL NEWS - —Me­lanie Evans

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.

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