Allina’s net income drops 30% in Q3

Allina Health’s revenues increased in the third quarter of 2018, but the Minneapolis-based system ended the period with lower operating income and net income than in the same quarter a year earlier.

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Allina reported revenues of $1.05 billion in the third quarter of this year, up from $1.01 billion in the same period of 2017, according to recently released bondholder documents. The boost was attributable to higher net patient service revenue, which climbed nearly 5 percent year over year.

The system’s operating expenses totaled $1.03 billion in the third quarter of 2018, up from $981.4 million in the same period a year earlier.

Allina ended the third quarter of this year with operating income of $26.4 million. That’s down 9 percent from the third quarter of 2017, when the system reported operating income of $29.1 million.

Allina reported an investment return of $44.9 million in the third quarter of 2017, but that number dipped to $22.4 million in the third quarter of this year.

After factoring in the drop in investment income, Allina’s net income tumbled 30 percent year over year to $50.1 million in the third quarter of 2018.

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