Trinity Health rounded out its fiscal 2020 on a razor thin operating margin due to the COVID-19 pandemic.
The Livonia, Mich.-based system drew $74.7 million in operating income in the year ended June 30 on $18.8 billion in revenue—a 0.4% margin. That's compared with operating income of $271.8 million in fiscal 2019 on $19.3 billon in revenue, a 1.4% margin.
Not-for-profit Trinity recognized $644 million of its $775 million in federal relief grants during the fourth quarter of its fiscal 2020. Without the grants, Trinity said its margin would have been -3.1%. The health system also received $1.6 billion in accelerated Medicare payments, which must be repaid.
Like countless other providers, Trinity said the pandemic did a number on its volumes. Its same-ministry volumes declined 6.1% in fiscal 2020 year-over-year. Emergency department visits fell 9.5% in that time, and surgical volumes fell by 12.9%. However, after significant declines in April and May, Trinity said it was already seeing "solid volume recovery" in June.
The health system said its net patient service revenue declined by $1.1 billion in the last four months of fiscal 2020—the peak of the pandemic—compared with the same period in fiscal 2019, excluding the sale of Lourdes Health System.
Trinity's expenses fell by 1.4% year-over-year to $18.8 billion.
Trinity said it had 245 days cash on hand as of June 30, compared with 180 days as of June 30, 2019. Draws on its lines of credit and Medicare cash advances added 54 days to the 2020 figure.