- Geisinger saw revenue rise 8.8% to $5.1 billion in the first nine months of fiscal year 2018, compared with the same period a year ago, fueled by a 4.6% gain in patient service revenue and a 13% increase in premium revenue.
- Operating income was $145.9 million, up 38% from $105.7 the prior year, according to financial documents released by the Danville, Pennsylvania-based health system.
- Contributing to the rosy picture was a 3.5% increase in discharges and 2.3% growth in discharges and observations per 23-hour stays attributed to expanded clinical programs.
Operating profit for the nine months ended March 31 also benefited from the January sale of two skilled nursing facilities for $17.7 million.
Offsetting gains were higher expenses across all categories — salaries and benefits, medical claims, supplies and depreciation/amortization. Total expenses climbed to nearly $5 billion, up from $4.6 billion in the first nine months of the prior fiscal year.
After accounting for expenses and losses, the system recorded a net gain of $356.9 million, up from $352.8 million a year ago.
In March, Geisinger announced plans to build and co-own an 80-bed acute care hospital with St. Luke’s University Health Network. The hospital will be located in Pennsylvania’s Schuylkill County, where both health systems already have facilities.
The nonprofit integrated health system also announced two pilots in March with York, Pennsylvania-based transit service Rabbittransit aimed at improving access to care for patients with challenges getting to medical appointments.
The report comes as other nonprofit hospitals have also seen gains over the past year. Mayo Clinic reported $707 million in operating income and $12 billion in revenue in 2017, up more than $225 million and $1 billion, respectively, compared with 2016. UPMC also recorded strong 2017 financials with net income of $1.3 billion on revenues of $16 billion.
For some nonprofits, the results have been mixed. Cleveland Clinic, which saw operating income rise and fall in 2017, ended the year at $328 million — an improvement over a $243 million drop the previous year. Operating income declined 22% in the 2018 first quarter, as expenses climbed. Revenues grew 3.6% to $2.12 billion, compared with the same period a year ago.