In a financial report for 2013 (PDF), Children's said its decision to withdraw from the joint venture was one of the factors that led to a 5.6% increase in patient service revenue for the year.
It had taken a $4.7 million loss on its investment in 2012, and a $2.2 million loss in 2013 before ending its participation. Children's new physician practice contributed $24.3 million to net patient service revenue, the hospital said in Thursday's report.
Although discharges were essentially flat year over year, the system reported a 1.8% increase in inpatient surgeries and a 3.5% increase in emergency room visits. Children's also said it saw higher reimbursement rates from its major payers.
However, expenses grew 7.6% compared with the prior year. Salaries increased 6.4% as it staffed up for higher volume and absorbed higher compensation costs for Children's Specialty Services. Supply costs increased 8.9%.
In total, Children's reported a surplus of $555.9 million on revenue of $1.2 billion in 2013 compared with a surplus of $394.8 million on revenue of $1.1 billion in 2012.
Children's Healthcare also released financial statements for the first quarter of 2014 (PDF), ended March 31. Its surplus for the quarter fell to $64.4 million on revenue of $306.7 million compared with $174.9 million on revenue of $281.2 million in the prior-year period.
Discharges fell 16.9% year over year while emergency room visits declined 19.1% and surgeries, 6.1%.
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