Rising expenses led to a 19% drop in the operating surplus of Cedars-Sinai Medical Center during its recently concluded fiscal 2014, as the center saw more outpatient care amid declining inpatient stays.
Cedars-Sinai realized a $283.7 million operating surplus on nearly $2.93 billion in revenue in the fiscal year that ended June 30, compared with an operating surplus of $350.1 million on $2.88 billion in revenue reported in fiscal 2013, according to audited financial statements from the Los Angeles-based provider. The medical center's operating margin fell to 9.7%, from 12.1% the year before.
Expenses were higher across the board, with total expenses up 4.5% at $2.6 billion, compared with $2.5 billion in the year prior. Interest payments represented the biggest expense, up 31.4% at $44.1 million. Among other costs, expenses from depreciation and amortization were up 14%, professional fees increased by 11%, payroll-related costs were up 3.5% and supplies costs were up 2.9%.
Like many hospitals, care at Cedars-Sinai is shifting toward outpatient visits and outpatient surgical procedures. The center saw outpatient visits up 5% at 662,055 and outpatient surgeries up 8% from the prior year at 14,392. Discharges were down 7.5% at 51,419 for the year, as patient days decreased 7% to 234,271.
At $439.4 million, the hospital's total surplus decreased slightly by 1.2% from the year prior, when it was $444.9 million.
Commercial and self-paying patients made up a higher percentage of business at 10.7%, up from 6.6% the year before. Medi-Cal patients accounted for 4.4%, down from 6.3%. Medicare, HMO/PPO and managed care numbers remained relatively steady.
Follow Adam Rubenfire on Twitter: @arubenfire
