Trinity Health revenue increase driven by acquisition, volume
- Trinity Health saw revenue grow 7.9% to $17.6 billion in fiscal 2017, an increase of $1.3 billion, according to a financial summary for the year ended June 30.
- Operating income before other items totaled $266 million, up from $151 million in 2016. The health system reported non-operating income of $1.4 billion, a $1.3 billion gain over last year, driven by strong investments.
- Driving performance were acquisitions, higher volume, improvements in service mix, better revenue-cycle management and population health risk share gains, the Livonia, Michigan-based Catholic nonprofit said.
Operating expenses for the year included $284 million to reposition inpatient utilization in some markets and restructure employee severance and benefits.
The health system is also looking at expanding its footprint with issuance of $300 million in debt to acquire, build, renovate and equip new and existing facilities and another $300 million for acquiring a “regional health ministry,” an Oct. 24 regulatory filing says.
Among recent acquisitions contributing to last year’s success were St. Francis Care, Johnson Memorial Medical Center and Saint Mary’s Health System — all in Connecticut. Saint Mary’s, located in Waterbury, contributed $56 million for the year, according to the summary of results.
Earlier this month, Trinity Health-owned Loyola Medicine signed a letter of intent to purchase Chicago-area MacNeal Hospital from Tenet Healthcare for an undisclosed price. The proposed deal — which includes the 368-bed hospital, physician practices, an independent practice association of nearly 1,000 physicians and its associated accountable care organization — would build on Trinity’s existing presence in the area with Loyola University Medical Center, Gottlieb Memorial Hospital and a medical center in Maywood, Illinois.