Chicago's Swedish Covenant Hospital swung to a $6.9 million operating profit in fiscal 2012, compared to a loss of $1 million last year, an encouraging sign for the hospital as it tries to expand service lines to attract more patients.
The income surge is partly because total revenue improved 7 percent, to $268.6 million, in the fiscal year that ended 2012, compared with $251.2 million in 2011, according to the hospital's most recent unaudited financial statements. The 313-bed hospital, like other Chicago safety-net hospitals, faces revenue pressures due to its reliance on the government health insurance programs.
Steadily increasing admissions, strong focus on expanding outpatient services and attention to the revenue cycle contributed to the hospital's fiscal 2012 performance, according to a Dec. 3 report by Fitch Ratings, which reaffirmed its BBB+ rating on nearly $155 million in bonds. The rating is two notches above non-investment-grade bond status.
Favorable credit scores allow hospitals to borrow money at lower interest rates.