Legacy Health, Portland, Ore., fortified its already-sound financial position in its fiscal 2014 despite the fact many other not-for-profit hospitals and health systems struggled with their operations last year.
The five-hospital system posted its 2014 statements (PDF) Friday. Legacy's fiscal year ended March 31.
Last year, the organization did not acquire any new hospitals. Instead, Legacy appears to be benefitting from a growing local population. Portland's population grew about 4.4% from April 2010 to July 2013, according to estimates from the U.S. Census Bureau.
Legacy realized a $50.1 million operating surplus on almost $1.49 billion in total revenue. That represented a 2% improvement from fiscal 2013, when Legacy posted a $49 million operating surplus on $1.37 billion in revenue. The operating margin in 2014 was 3.4%, compared with 3.6% the year prior.
Revenue was up 8.8%. Medicare and Medicaid comprised about 36% of Legacy's net receivables in 2014, slightly more than in 2013. Regence, Oregon's Blue Cross and Blue Shield affiliate, represented more than 17% of Legacy's net receivables, compared with 14% in 2013. Last year, Legacy and Regence created a risk-based accountable care contract. Legacy's financial documents did not disclose details of the partnership.
Another differentiating factor for Legacy was its inpatient business. Legacy's discharges were practically flat year over year. It has not been uncommon for similarly sized systems to post annual discharge decreases of 7% or more.
Legacy's total surplus, including investment income, rose 7.3% year over year to $95 million.
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