CHI's operating loss swells to $153.9M in Q2
Catholic Health Initiatives, a nonprofit 103-hospital system based in Englewood, Colo., saw revenue increase in the second quarter of fiscal year 2017 but ended the period with an operating loss, according to recently released bondholder documents.
CHI said operating revenues climbed to $4.2 billion in the second quarter of FY 2017, up from $4 billion in the same period of the year prior. The increase was largely attributable to higher net patient service revenue, which grew 5.2 percent year over year to $4 billion in the second quarter of FY 2017. CHI said $93.4 million of net patient service revenue was due to recently completed acquisitions.
However, after factoring in a year-over-year increase in expenses, CHI ended the most recent quarter with an operating loss. CHI reported an operating loss of $153.9 million in the second quarter of fiscal year 2017, compared to an operating loss of $112.1 million in the same period of the year prior.
CHI said operating results declined in the second quarter of FY 2017 across several of its regions, including Nebraska, Texas, Kentucky, Arkansas, North Dakota, Minnesota and Iowa. The declining results in those regions were partially offset by improvements in the Ohio, Tennessee, Colorado and Pacific Northwest regions.
In a statement to Becker's, a CHI spokesman said, "While financial results in the second quarter of the 2017 fiscal year demonstrated a favorable trend over the previous quarter, CHI continues its focus on a comprehensive performance-improvement and expense-reduction program, implementing a wide array of clinical and operational changes. The organization is confident that this disciplined, rigorous effort will yield further positive results in financial performance over the next six months of this fiscal year."
In the first quarter of FY 2017, CHI reported an operating loss of $217.8 million, compared to an operating surplus of $7.8 million in the same period of the year prior.
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