The Cleveland Clinic's surplus boomed in the first quarter of 2015, as the not-for-profit system saw more Medicaid-eligible patients and grew its long-term investments.
Excess of revenue in the quarter ended March 31 grew 88.8% to $163.9 million, compared to a year ago.
The 11-hospital system's total amount of uncompensated care, which included provisions for uncollectible accounts and charity care, plunged 26.4%, compared to the same period last year, which the system attributed to Ohio's Medicaid expansion.
Cleveland Clinic was buoyed by a 46.8% increase in total investment return, which came after the system updated its investment strategy beginning last year, reducing asset allocations for common and preferred stocks.
The system also modified its allocation of pension plan investments in its primary pension plan.
Inpatient admissions for the system increased 3% in the first quarter of 2015, compared to the same period in 2014. The clinic experienced a 2% increase in inpatient admissions, while its Ohio hospitals collectively saw a 3% uptick in inpatient admissions. Thus, net patient revenue increased by 2.5%, the system said.
Increased admissions at the Ohio regional hospitals was the result of a spike of influenza cases in the state, the system said. The system's Florida facilities experienced a 13% increase in inpatient admissions, which they attributed to an expanded number of outpatient and surgical facilities, as well as increased activity in their expanded transplant program, the system said.
However, increased patient volume led to higher drug costs, Cleveland Clinic said. Pharmaceutical costs increased 18.7% in the first quarter of 2015, compared to the same period in 2014.
