Bon Secours Health System saw its operating income dip over the past nine months as it prepares for increasing outpatient business and population health management returns.
The 19-hospital Catholic system based in Marriottsville, Md., posted operating income of $58.1 million on revenue of $2.5 billion for the nine-month period that ended May 31, according to Bon Secours' latest financial disclosure.
That compares with operating income in the year-earlier period of $81.3 million on revenue of $2.4 billion.
Strong investment gains during the 2017 nine months more than covered the operating decline. Bon Secours posted an investment gain of $74.6 million during the period compared with an investment loss of $15.3 million in the year-earlier nine months. That gain helped the not-for-profit system to a net surplus of $105.1 million compared with $33.8 million in the year-ago period.
Outpatient visits across the system rose 2% to 729,793 visits from 716,410 in the year-ago nine months, while hospital discharges fell slightly to 75,722 from76,058, the system reported.
Bon Secours operates in Virginia, Maryland, Kentucky, South Carolina, New York and Florida, with Richmond, Va., its largest and most-profitable market.
Bon Secours increased its network of employed physicians and advanced practice clinicians to 844 during the period from 827 in the year-earlier period.
That was part of years-long effort to build out its accountable care organization and clinically integrated networks to better manage populations and benefit from value-based reimbursement, the system reported.
Bon Secours has been adding primary-care physicians over time, turning in a 5% increase in primary-care visists over the nine months compared with the year-earlier period, the disclosure shows.
The system's Richmond market, which has five hospitals including St. Mary's Hospital and Richmond Community Hospital, posted operating income of $60.1 million on revenue of $1.1 billion during the nine months.