Montefiore Health System revenue, operating income rise
- Montefiore Health System reported revenue of $4.4 billion for the first nine months of 2018, up 7.3% from $4.1 billion in the same period a year ago.
- The Bronx-New York-based system, which includes Montefiore Medical Center, credited a 6.6% rise in net patient service revenue — from $2.55 billion to $2.61 billion — with helping grow overall revenue.
- Operating income for the nine months ending Sept. 30 jumped 58.1% to $59.6 million, from $37.7 million the previous year, according to unaudited financial statements from the 11-hospital system.
The period wasn't without challenges for the health system, as expenses also rose year over year from $4.1 billion to $4.4 billion, due in part to labor and pharmaceutical costs.
After accounting for nonoperating gains and losses, Montefiore ended the nine months with net income of $118.8 million, a 66% increase over last year's $71.5 million. The company attributed much of the gain to a one-time malpractice insurance adjustment of $42.3 million.
Hospitals continue to struggle with rising costs, reimbursement cuts and a shift to more care in outpatient care delivery centers. In a recent report, Fitch Ratings predicted a stable outlook for 2019, but said nonprofit hospitals' pricing and profit margins face ongoing pressure.
"Most disruptive threats to healthcare business models boil down to an attack on pricing power, including outside industry competitive upstarts, government price setting and consumer and employer efforts to force lower pricing," managing director Megan Neuburger said in the report.
Phoenix-based Banner Health saw its net income plunge 44% to $278 million in the first nine months of 2018, despite an increase in revenue — to $6.3 billion, from $5.8 billion a year earlier.
Franklin, Tennessee-based Community Health Systems also took a hit, with lower volume contributing to a 5.9% drop in net operating revenue for the third quarter of this year. The 117-hospital system reported a net loss of $325 million for the period, compared with a $110 million loss in Q3 2017.
- Becker's Hospital CFO Report Montefiore Health System’s operating income climbs to $59.6M