Aurora Health Care's finances held steady in 2017
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Aurora Health Care's finances held steady in 2017 as the Milwaukee-based system forges ahead with its newly-approved union with Advocate Health Care.
Aurora operating income fell slightly in 2017 to $339 million, compared with $373 million in 2016. Total revenue during that time was $5.3 billion in 2017, up from $5.1 million in 2016.
The 15-hospital health system recorded a slight increase in profit year-over-year, from $470 million in 2016 to $474 million last year.
On the expense side, professional fees increased 14% in 2017. During the same time, salaries, wages and fringe benefits increased by about 6%. Aurora's net patient service revenue increased by about 4%.
Aurora's charity care costs increased by nearly 23% in 2017, to $58.3 million. Meanwhile, its shortfall associated with providing services to Medicaid patients fell slightly during the same time period. Aurora's uncompensated cost of treating Medicare patients increased about 2.7% year-over-year.
Aurora has 14 acute-care hospital campuses, one psychiatric hospital, a network of about 158 physician clinics, home health services and about 67 retail pharmacies, among other operations.
Last week, Aurora and Downers Grove, Ill.-based Advocate announced that the Federal Trade Commission and the chair of the Illinois Health Facilities & Services Review Board had signed off on their proposed deal in February, making their merger official. The resulting organization will have 27 hospitals in Wisconsin and Illinois and $10.7 billion in combined revenue.
The health system recorded $9 million in impairment charges last year stemming from construction on an abandoned project, investment in an unconsolidated entity and a retail pharmacy prescription list intangible. The system did not record impairment charges in 2016.
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