Christus Health, a Texas-based health system with goals to expand, closed the first half of its fiscal year with its margin up slightly, as revenue from patients, joint ventures and health plan premiums outpaced expenses.
Christus has grown through physician employment in recent years and is in negotiations to acquire three-hospital Trinity Mother Frances Hospitals and Clinics in a deal announced in January. Christus owns or manages operations in six states and in Mexico and Chile.
Revenue from treating patients increased 1.6% and joint venture gains increased 2% though premium revenue declined 1%. Overall, revenue grew 1.6% to $1.82 billion for the six months that ended Dec. 31. That's up from $1.79 billion the same six months a year ago.
Expenses, however, grew more slowly. The system's operating costs increased 1.3% to $1.78 billion for the six months that ended last December, up from $1.76 billion the prior year.
That left Christus with an operating surplus of $38.1 million and a slightly larger operating margin of 2.1% for the six months compared with an operating surplus of $32.3 million, or a margin of 1.8%, the year before.
Investment losses that have dragged down not-for-profit health systems' net financial results also eroded Christus Health's performance. The system reported a net loss for the six months ended Dec. 31 of $13.3 million compared with a net loss for the first half of the prior year of $17.7 million.