SCL Health's operating margin falls to 2.4%

For the six months ended June 30, Denver-based SCL Health's operating margin fell to 2.4 percent, compared to 2.6 percent during the same period for 2013.

The health system generated $28.5 million in operating income for the first six months of fiscal year 2014, compared to $30.6 million during the first six months of last year. SCL Health's operating cash flow margin was 12.3 percent for the six months ended June 30, compared to 12.6 percent for the same period of 2013.

The health system's total operating revenue was $1.19 billion, a $26.5 million increase over the first six months of 2013. However, SCL Health's operating expenses also grew. The health system's total operating expenses were $1.16 billion, which exceeded its operating expenses for last year by 2.5 percent.

In March, SCL Health sold Saint John's Health Care in Santa Monica, Calif., for $93.9 million to Renton, Wash.-based Providence Health & Services. The health system did not recognize a loss attributable to the sale, as the value of the related assets had previously been written down to fair value.

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