Cleveland Clinic Health System more than tripled its operating income in the second quarter of 2017 compared to a year ago. Second-quarter operating income increased to $130.5 million in the second quarter compared to $40.2 million last year, reported Becker’s Hospital Review.
The health system, which has 14 hospitals and about 3,900 staffed beds, said higher patient volumes were behind the revenue growth. Acute admissions increased nearly 5% compared to 2016, and surgeries and outpatient volume also increased.
The nonprofit’s revenues increased to $2.16 billion in the second quarter, an increase from $1.98 billion last year.
While other facilities struggle with lower patient admissions, Cleveland Clinic is bringing in more inpatient volume and the associated revenues. The nonprofit health system is looking forward and reinvesting those amounts in a variety of ventures. It is continuing to grow, including purchasing Dover, Ohio-based Union Hospital and building an $8 billion expansion of its main campus.
Cleveland Clinic finances are looking far stronger than last year. In 2016, the company saw a 12% increase in revenues compared to 2015, but also saw its expenses skyrocket 19%. This resulted in Cleveland Clinic seeing a 71% decrease in operating income in 2016.
However, the second quarter of this year enjoyed strong operating income numbers. Cleveland Clinic is bucking a trend seen in Ohio and across the country. Earlier this month, Summa Health, a seven-hospital system in northeast Ohio, reported it lost more than $33 million in the first half of the year, which was in part because its inpatient admissions decreased 7%, emergency visits decreased 4% and outpatient visits dropped 6% over the past year.
Not relying on just patient volume in its Ohio facilities, Cleveland Clinic also expanded to England, Canada and the United Arab Emirates, and recently signed a management consulting agreement with an organization looking to open a hospital in Shanghai, China.
Cleveland Clinic is also getting into the payer space through a partnership with Oscar. The companies will offer co-branded health plans to people living in northeast Ohio.