Trinity Health, the system formerly known as CHE Trinity, reported a first-quarter operating surplus that was 56.8% higher than during the same period in its last fiscal year as it booked higher volume and fewer integration expenses.
CHE Trinity marked its first full fiscal year as a combined organization on June 30. Now with a new identity, the Livonia, Mich.-based system that was formed through the May 2013 merger of Catholic Health East and the legacy Trinity Health is continuing to hold down its expenses as it experiments with new payment models.
In total, Trinity Health reported an operating surplus of $96.4 million (PDF) on revenue of $3.5 billion for its first fiscal quarter, which ended Sept. 30. During the prior-year period, it reported an operating surplus of $61.5 million on $3.3 billion in revenue.
Last year's quarterly results included $9 million in transaction-related costs.
While discharges were flat year over year, outpatient visits increased 5.6% and emergency-room visits were up 4.6%.
The system also recognized a gain of $40.3 million from a July joint venture that gave its Mercy Health Services-Iowa a controlling stake in Siouxland Surgery Center in Dakota Dunes, S.D.
Trinity has divested a number of underperforming hospitals over the past year. It transferred Mercy Health System of Maine to Eastern Maine Healthcare Systems in October 2013.
Prime Healthcare Services then agreed to buy St. Michael's Medical Center, Newark, N.J., in February. That deal is still awaiting regulatory approval. And Munson Healthcare agreed to assume ownership of Michigan-based Mercy Health Partners, North, last month.
Two other sales also are pending. Last December, the board of St. James Mercy Hospital, Hornell, N.Y., approved a plan to sell the facility, though a buyer has not yet been found. And earlier this month, Trinity also agreed to sell St. Joseph Mercy Port Huron in Michigan to Prime.
Despite better operating metrics, a loss on its investments negatively impacted Trinity's bottom line for the quarter. Its net surplus was $114.7 million compared with $233.4 million in the prior-year period.
Follow Beth Kutscher on Twitter: @MHbkutscher
