Legacy Health sees another year of healthy finances

Legacy Health, Portland, Ore., fortified its already-sound financial position for its fiscal 2014 as many other not-for-profit hospitals and health systems struggled with their operations last year.

The five-hospital system released financial statements for its 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 posted a $50.1 million operating surplus, a 2% increase from 2013, when Legacy reported a $49 million operating surplus. Total revenue rose 8.8% to $1.49 billion for fiscal 2014 compared with $1.37 billion in the previous year. The operating margin in 2014 was 3.4%, compared with 3.6% for the prior year.

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. —Bob Herman