Acquisitions by University Hospitals Health System helped its revenue soar last year. But expenses also grew rapidly and the Ohio health system ended the year with a slightly smaller margin.
Cleveland-based University Hospitals ended its fiscal year Dec. 31 with revenue up roughly 25.6% to $2.94 billion, compared with 2013. Operating income was up 7.6% to $84.6 million. But because expenses grew slightly faster than revenue, the system's margin still declined to 2.9% from 3.4% the prior year.
Last year's acquisitions increased University Hospitals' market share by one-third, the system told bondholders. The system acquired Parma Community General Hospital and the Elyria Medical Center in January 2014. In March, it announced a deal to acquire Ashland, Ohio-based Samaritan Regional Health System. University Hospitals is the second-largest system in its market, with a 28% share, behind the Cleveland Clinic, which holds 33% of the market.
University Hospitals' net income for 2014 rapidly increased to $274.7 million, up 59% from the $173.3 million the prior year thanks to gains from its acquisitions.
