SCL Health System, which has pruned its portfolio of hospitals during the past year, reported an increase in 2013 revenue but a lower operating surplus because of higher expenses.
In a financial filing for its fiscal 2013, ended Dec. 31, SCL reported a surplus of $188.6 million on revenue of $2.3 billion. That represented an improvement from a surplus of $180.6 million on revenue of $2.2 billion the prior year.
However, operating income decreased to $41.4 million in 2013 from $56.7 million the previous year as salaries, benefits and other expenses increased. The system recognized higher investment income that offset the decline.
The Denver-based Catholic system closed a deal in April 2013 to sell two of its Kansas hospitals to for-profit chain Prime Healthcare Services. The $54.1 million deal included Providence Medical Center in Kansas City and St. John Hospital in Leavenworth.
Six months later, SCL entered into an agreement to transfer sponsorship of St. John's Health Center in Santa Monica, Calif., to Providence Health & Services in a $125 million deal. That transaction closed in February 2014.
Of SCL's eight remaining hospitals, four are located in Colorado, a Medicaid expansion state. The remainder are in Kansas and Montana, which are not expanding their coverage programs.
The system recognized an 8.7% increase in patient service revenue from Medicaid and a 12% increase in revenue from managed care and commercial plans. However, revenue from self-pay patients also increased 13.2%, and system provided more charity care and recorded higher write-offs from bad debt.
Admissions fell 4.2% year-over-year.
Follow Beth Kutscher on Twitter: @MHbkutscher
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