Texas Health Resources saw higher inpatient and outpatient volume in the first half of the year, but higher operating expenses and volatility in the financial markets depressed its bottom line.
The Arlington, Texas-based system said higher patient volume contributed to a 2.3% increase in revenue for the six-month period ended June 30. It reported revenue of $2 billion, a $45.1 million increase over the same period last year.
Discharges at the systems increased 4.2% while outpatient visits were up 3%. Emergency room visits were flat.
But its operating expenses grew faster, as higher salary and benefit costs led to a 3.4% increase in costs.
Texas Health also saw reduced funding from the 1115 Waiver program, which amounted to a $23.6 million hit to its year-to-date operating revenue.
In total, the system reported an operating surplus of $89.3 million, compared with $107.8 million in the first half of last year.
Its nonoperating income also took a hit as its investment returns were 46.6% lower in the six-month period than they were in the same period in 2014. The system said its excess margin was 5.7% for the period compared with the year-ago period's 10.3%.