Revenue growth coupled with tight cost controls allowed separate not-for-profit hospital systems in North Carolina and Mississippi to post improved operating and net surpluses.
New Hanover Regional Medical Center in Wilmington, N.C., posted an operating surplus in fiscal 2015 of $102.8 million on revenue of $821.4 million compared with an operating surplus of $63.9 million on revenue of $758.3 million in fiscal 2014 ended Sept. 30, according to audited financial statements.
The $63.1 million increase in revenue, an 8.3% gain, far exceeded the system's growth in operating expenses, the financial statements showed. Operating expenses increased $24.2, or 3.55 from the prior year.
The audit said population growth in New Hanover and nearby counties has helped fuel business at the three-campus health system. Like other healthcare providers, though, tightening reimbursement from Medicaid, Medicare and private payers continues to put pressure on New Hanover.
Delta Regional Medical Center in Greenville, Miss., kept a lid on its costs to post a 2015 operating surplus of $6.1 million compared with an operating surplus of $3 million in the prior year, audited financial statements show.
Its net surplus was $5.4 million on revenue of $126.1 million in fiscal 2015 ended Sept. 30, compared with a net surplus of $2.2 million on revenue of $123.3 million the prior year.
Total operating expenses dipped to 90.4% of operating revenue for the year vs. 92.3% last fiscal year, the documents show.
Salaries and benefits as a percentage of the hospital's overall operating costs dropped to 50.2 % from 51.7% in the prior year.