Dive Brief:
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Dallas-based nonprofit Baylor Scott & White Health reported a $595 million profit through the first two quarters of fiscal 2018.
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The 48-hospital system, which has more than 1,000 patient care sites, said its operating revenue was up from $4.5 million in 2017 to $4.8 million in 2018.
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Through the first six months of fiscal 2018, the system is reporting an operating margin of 8%, which is better than the 4.7% through the first half of fiscal 2017.
Dive Insight:
Baylor Scott & White said its inpatient admissions and occupancy also increased by about 2% and emergency department visits increased by about 3%. Though some systems are facing less utilization, such as Catholic Health Initiatives, Baylor Scott & White isn't the only system doing well with inpatient admissions. HCA added nine hospitals and 2,448 licensed beds and gained a 3.6% inpatient revenue per admission increase in 2017.
Though the report is mostly positive, Baylor Scott & White Health’s operating expenses ticked up from $4.3 billion to $4.4 billion. The health system said that was partially related to increased wages and benefits and an increase in the cost of supplies.
Also, the system’s health insurance product decreased by about 239,000 members, which meant a loss of 13.5% in premium revenue in the first half of the year. A part of the membership drop came after the system left the Affordable Care Act exchanges market. It lost more than 42,000 members when the system dropped out of the exchanges.
Of course, having fewer members also means Baylor Scott & White didn't need to spend as much on medical claims, which dropped by 23%, or $44.6 million, during the first half of the fiscal year.
The health system’s EBITDA increased from $490 million through the first six months of 2017 to $731 million through the first half of fiscal 2018.