Phoebe Putney Health System in Albany, Ga., posted a strong financial turnaround in its fiscal 2015 on higher revenue and reduced costs for salaries, wages and benefits.
The performance would have been even better except for a dramatic drop in investment income for the year—a problem for several not-for-profit hospital systems in 2015.
Phoebe Putney, a three-hospital system, posted an operating surplus of $14.9 million in its fiscal year ended July 31, compared with an operating loss of $30.6 million for the previous year, according to the system's audited year-end financial statement (PDF).
Revenue in fiscal 2015 jumped to $673.8 million from $647.1 million in fiscal 2014.
Net surplus for the year rose to $19.2 million from $10.1 million. The surplus was significantly dampened by the decline in investment income, which fell to $4.3 million from $40.7 million.
Phoebe Putney Chief Financial Officer Brian Church had not responded at deadline to requests for comment.
The system's operating surplus was bolstered by cost-cutting. The system lowered its fiscal 2015 salaries and wages to $281.8 million from $295.9 million in fiscal 2014. Employee health and welfare costs dropped to $57.6 million from $71.6 million.
This spring, Phoebe Putney settled a four-year legal battle with the Federal Trade Commission that allowed it to preserve its acquisition of Palmyra Medical Center from HCA. The FTC had challenged the acquisition as anti-competitive.
The settlement requires Phoebe Putney and the public hospital authority that owns the system to notify the FTC if it plans to acquire any hospital clinic or physician group in its six-county market.