Trinity Health reported operating income before special items of $266 million in 2017, up from $151 million last year, buoyed by strong acquisitions, volume growth, a better service mix, improved revenue-cycle management and population health risk-share gains, the Catholic-sponsored health system said in its fourth-quarter earnings.
Trinity, which is one of the nation's largest not-for-profit hospital systems, saw its revenue increase by $1.3 billion to $17.6 billion, a 7.9% increase over 2016.
The Livonia, Mich.-based system reported non-operating income of $1.4 billion on the year, a $1.3 billion improvement over last year, driven by strong investments, the company said. Its net margin rose to 7.3%, compared to 0.3% last year.
The system spent $284 million predominantly on repositioning certain inpatient markets as well as restructuring severance and employee benefits.
Trinity, which has a total of 93 hospitals, looks to widen its footprint by issuing $300 million in debt to acquire, construct, renovate or outfit new and existing facilities, plus an additional $300 million to acquire a "new regional health ministry," according to a regulatory filing posted Oct. 24.
Maxis Health, the Trinity Health division that owns Lourdes Health System and St. Francis Medical Center, signed a letter of intent last month to sell three hospitals to Camden, N.J.-based Cooper University Health Care.
Loyola Medicine, which is owned by Trinity Health, announced on Oct. 11 that it plans to acquire Tenet Healthcare Corp.'s MacNeal Hospital in the Chicago area where Trinity also has Loyola University Medical Center, a 547-bed academic medical center in Maywood, and Gottlieb Memorial Hospital, a 247-bed community hospital in Melrose Park, and more than 1,200 physicians.
Trinity has benefited from its Connecticut health system acquisitions, which include St. Francis Care in Hartford, Saint Mary's Health System in Waterbury and Johnson Memorial Medical Center in Stafford Springs, which now make up its Trinity Health of New England market.