Detroit-based Henry Ford Health System returned to a net surplus in its fiscal 2014 thanks to rising patient revenue, despite a decline in inpatient days, and rising premium revenue from its insurance operations.
The not-for-profit six-hospital system reported a net surplus of $27.8 million on $4.7 billion in revenue, an improvement from a deficit of $12 million on 2013 revenue of $4.5 billion. Revenue was up 3% for the 12 months ended Dec. 31.
Revenue from health insurance premiums for the system, which owns Health Alliance Plan of Michigan and Onika Insurance Co., totaled $2.2 billion, up 3% from $2.17 billion the prior year.
The system reported $39.4 million in gains from investments, 32.5% lower than $58.3 million reported the year before.
As at many systems, expenses, including a 10.7% increase in supply-related costs, were on the rise for Henry Ford last year.
The system also reported about $11.2 million in unusual items, not included in its surplus. Included were a roughly $3 million residual gain from the 2013 sale of a joint venture, $9 million from the December sale of its long-term-care business and a $1 million loss from refinancing bonds.
Henry Ford's payer mix remained relatively the same, with a slight decrease in Medicaid patients. Admissions, excluding newborns, were down 2% and inpatient days were down 4%.
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