(This article has been updated with a correction.)
New York Methodist Hospital in Brooklyn saw its income
increase roughly 14% during the first half of the year from the same period a year ago, newly released financial statements show.
Income for the hospital totaled $40.7 million on total revenue of $425.9 million for the six-month window. That's compared with income off $35.7 million on total revenue of $387.9 million for the first six months of 2013.
Patient service revenue increased 9.8% for the first half of this year to $388.8 million compared to $354 million the same six months a year ago. Expenses increased 9.4%.
Moody's Investors Service recently upgraded the hospital, which has seen demand steadily grow, even as hospitals across the U.S. report an ongoing sag in hospital admissions. Analysts cited the hospital's stable financial performance and limited debt in an increasingly competitive market for the upgrade.
New York Methodist's market is also fluid, Moody's analysts said, with a push into Brooklyn by Manhattan rivals, other faltering Brooklyn hospitals and an anticipated cash infusion from New York's recently approved Medicaid waiver.
Some changes will benefit the 561-bed hospital, such as the influx of doctors and patients who turned to New York Methodist after Brooklyn's Long Island College Hospital struggled and closed. But other market shifts could threaten the hospital's performance, such as investments and awards granted under the state's waiver, the analysts noted. “We expect some of the funding will support some of New York Methodist's struggling competitors,” Moody's said.
Joint branding and physician recruitment and expansion in Brooklyn has helped to increase the number of patients visiting New York Methodist, Moody's said. And preliminary plans are in the works for a $300 million to $400 million ambulatory care center to be built next to the hospital, which would attract more outpatient business. The plans call for operating rooms and an urgent care center to be housed in the center, Moody's said.
The hospital's financial statements also included a breakdown of its performance for the month of June.
In June, the hospital reported income of $5.2 million on total revenue of $70.5 million, an income decline of about 66% compared with income of $15.2 million on total revenue of $74 million for the same month a year ago.
Patient service revenue for June totaled $63.1 million compared with $60.6 million in June 2013.
June expenses increased about 11% from one year to the next, with salary and supply expenses increasing roughly 11% and 19%. (This article initially cited the hospital's June financial statements as its second-quarter results. The correct half-year figures are included here.)Follow Melanie Evans on Twitter: @MHmevans