SCL Health System, which has pruned its portfolio of hospitals during the past year, reported an increase in 2013 revenue but lower operating income because of higher expenses.
In a financial filing for its fiscal 2013, ended Dec. 31 Denver-based SCL reported a surplus (which includes returns on financial assets), 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 fell to $41.4 million in 2013 from $56.7 million the previous year as salaries, benefits and other expenses increased. Higher investment income offset the decline.
The Catholic system closed a deal in April 2013 to sell two of its Kansas hospitals to for-profit chain Prime Healthcare Services. 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.
The system saw an 8.7% increase in patient service revenue from Medicaid and a 12% increase in revenue from managed-care and commercial plans. Revenue from self-pay patients also increased 13.2%, and the system provided more charity care and recorded higher write-offs from bad debt. Admissions fell 4.2% year over year.
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