Aurora Health Care sees annual operating income dip 19%

Aurora Health Care’s revenue increased in 2016, but after factoring in higher expenses, the Milwaukee-based system ended the year with lower operating income than in the year prior. 

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Aurora Health Care recorded revenues of $5.1 billion in 2016, up 4 percent from $4.9 billion in 2015, according to recently released bondholder documents. However, the system’s expenses outpaced revenue growth.

In 2016, Aurora Health Care’s expenses climbed to $4.8 billion, up 6.4 percent from $4.5 billion in the year prior. The system said labor costs and supply costs increased 9.4 percent and 6.2 percent, respectively, year over year.

Aurora Health Care ended 2016 with operating income of $373.3 million, down 19.3 percent from $462.4 million in the year prior.

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