The Cleveland Clinic saw a significant increase in its operating margin in 2014 as it held down expenses through a number of cost-saving initiatives.
Revenue increased 4% for the 11-hospital system. The organization, based in a Medicaid expansion state, also reported that the cost of charity care fell to $101 million for the year, down from $171 million in 2013.
For the year ended Dec. 31, Cleveland Clinic's operating surplus was $467.5 million on nearly $6.7 billion in revenue, compared with the prior year's operating surplus of $294 million on revenue of $6.5 billion. Its operating margin increased to 7% for 2014 from 4.5% the previous year. Its earnings report shows savings across the board, including for compensation and supply costs, but pharmaceuticals were the outlier, up 13%.