Greensboro, N.C.-based Cone Health recorded operating revenues of $901.8 million in the first two quarters of fiscal year 2017, up 9 percent from $827.2 million in the same period ended March 31, 2016.
At the same time, the health system saw operating expenses increase 8.5 percent year over year, from $810.5 million to $879.7 million. Cone Health said net patient revenue increased 5.5 percent to $823.8 million in the first six months of fiscal year 2017, compared to the same period the year prior. However, depreciation costs increased 7.9 percent to $56 million as a result of continued investment in facilities and IT, and supplies costs increased 7 percent. Cone Health said the rise in supplies costs was driven, in part, by supplies for intensive inpatient surgeries and drug expenses for high cost cancer treatments.
Cone Health ended the first two quarters of fiscal year 2017 with an operating margin of 2.4 percent and operating income of $22.1 million, up from $16.7 million for the same period oin the year prior.