Tampa (Fla.) General Hospital, one of the largest and busiest hospitals in the state, reported strong operations in its fiscal first quarter even as its overall surplus suffered.
Tampa General's fiscal first-quarter operating surplus totaled $12.3 million compared with $6 million in the same quarter a year ago, according to financial statements shared with bondholders (PDF). The not-for-profit academic hospital cut expenses and kept labor costs in check during the quarter, which ended Dec. 31, financial results showed. Its operating margin stood at 4.4% for the quarter, roughly the same as in the fourth quarter of its previous fiscal year.
However, including investments and unrealized gains, Tampa General's total surplus dropped 45% year over year to more than $20 million.
Revenue increased 7.5% year over year to $278.7 million. Expenses rose 5.2%. General insurance costs and professional fees at the hospital both fell by more than double digits. Salaries and wages grew 6.5% in the quarter, and employee benefits such as health insurance increased 0.4%. However, utilities and leasing costs soared 21%, the most of any expense item.
Tampa General recorded heavy volumes in the quarter. Total discharges were up 5.8%. Adjusted for outpatient services, the figure stood at 7.6%. Emergency room visits were the bigger gainer, up 9.6% in the quarter.
The hospital closed its fiscal 2014 in a similarly strong fashion, recording a 4.5% operating margin. It was a far cry from 2011 and 2012, when Tampa General's operating margins fell below 1%. The hospital is in a highly competitive market that features other large not-for-profit systems as well as large investor-owned chains.
Follow Bob Herman on Twitter: @MHbherman
