The Cleveland Clinic Health System reported its operating margin declined in the second quarter of this year as it faced lower patient volume and higher expenses, particularly from rising pharmaceutical, salary and benefit costs.
The 11-hospital system booked a 4.8% operating margin in the quarter (PDF) compared with an operating margin of 5.5% during the same period in 2013. However, its non-operating gains increased sharply as it realized higher returns on its investments.
In total, the Cleveland Clinic reported a surplus of $235.4 million on revenue of $1.6 billion in the second quarter, compared with a surplus of $110.4 million, also on revenue of $1.6 billion, in the year-ago period.