VHA, Irving, Texas, reported net income of $114 million on revenue of $451 million for calendar year 2003, a 25% profit margin. That compares with net income of $72 million on revenue of $448 million, a 16% margin, in 2002. VHA earned $121 million on operations in 2003, a slight increase over 2002 operating income of $120 million. Extracts from its audited financial statements are available online at www.vha.com. The hospital cooperative plans to publish an annual report, including audited financials, at the end of the month.
This is the first time VHA has made some of this financial information, such as net income, publicly available. Hospital cooperatives and group purchasing organizations have become more forthcoming about business and financial information since coming under pressure from a Senate subcommittee in 2002. In a written statement, VHA officials said that releasing financial figures is part of "a continuing effort to increase the public disclosure of information concerning the alliance's governance structure and finances. ... Although VHA is not governed by the same regulations as public companies, we are voluntarily holding our business practices to the applicable standards set by regulations for publicly traded companies." -- by Cinda Becker