Dive Brief:
- For the first quarter of 2015, Cleveland Clinic reported $60.7 million in operating income.
- The system's operating income increased by 45.1% from this time last year.
- Revenue was up 3.3%, admissions were up 3% and net income was up 88% from the same period last year. The system also saw a slight increase in expenses, going from $1.42 million to $1.44 billion.
Dive Insight:
It seems that Cleveland Clinic is benefitting from more patients becoming insured due to Medicaid expansion under the Affordable Care Act. The system saw 80% more Medicaid patients and almost 51% fewer self-pay patients in Q1 of 2015 when compared to the same period last year.
Other financial strategies that seem to be working for the Cleveland Clinic include developing multiple strategic alliances, many of which are designed (at least in part) to reduce costs; building a value-based business model and continuing to focus on cost-saving initiatives.