Beaumont reported net income of $301.6 million in 2015, up from $276 million the year prior, according to the Michigan Health Market Review 2016. DMC recorded net income of $133.7 million in 2015, up from $45.3 million in 2014.
“Taking the Detroit hospitals as a group … in 2013 they had a loss on their patient care operations of $278.1 million and they turned that around to a profit of $132.6 million in 2015,” Allan Baumgarten, author of the hospital market review, told The Detroit News. “That’s a swing of about $411 million in a two-year period.”
Mr. Baumgarten partially attributed Beaumont’s strong profits to the merger that created the 8-hospital system, which joined Royal Oak, Mich.-based Beaumont Health System; Farmington Hills, Mich.-based Botsford Hospital; and Dearborn, Mich.-based Oakwood Healthcare, according to the report.
The study author also pointed to Beaumont’s presence in Detroit’s more affluent and insured suburbs, where patients tend to be healthier. The five-hospital DMC system, a subsidiary of Dallas-based Tenet Healthcare, also gained from Michigan’s decision to expand Medicaid coverage under the ACA, the report states.
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