Orlando (Fla.) Health continued to improve its operating margin in its fiscal first quarter with higher admissions and an improved payer mix.
A challenging fiscal 2013 led the three-hospital system to hire Kaufman Hall to evaluate partnership options. But a turnaround the following year prompted it to end the review with a decision to retain its independence.
The system last month named a new CEO, David Strong, currently president of Rex Healthcare, Raleigh, N.C. He will start at Orlando Health in April.
In the first quarter of its fiscal 2015 ended Dec. 31, the system reported an operating surplus of $48 million on revenue of $553.6 million. That compares to an operating surplus of $30.9 million on revenue of $519.1 million in the prior-year period. Its operating margin improved to 8.7% for the quarter, compared with 5.6% in the comparable period.
The improvement resulted from higher patient volume, better rates from managed-care plans, a better payer mix and higher-acuity patients, the system said. Its combined admissions and observation visits increased 3.4%, though outpatient visits fell 1.7%.Self-pay patients dropped to 7.8% of patient revenue from 9.1% during the first quarter of fiscal 2014.