The nonprofit system reported operating income of $153.6 million in the three months ended Sept. 30, according to unaudited financial documents. That is up 35.6 percent from $113.3 million reported in the same period a year prior.
At the same time, Baylor Scott & White grew revenue nearly 4 percent in the first quarter of 2018 to $2.3 billion, up from $2.2 billion reported in the first quarter of 2017. The increase reflected a 5.5 percent increase in patient revenue in the first quarter of 2018 compared to the same period a year prior.
Baylor Scott & White’s first quarter revenue gains were partially offset by a 20.8 percent year-over-year decline in premium revenue for its insurance arm, Scott & White Health Plan. The decrease reflected Baylor Scott & White’s decision to exit the ACA’s public exchange in 2016, a move costing it 42,500 members beginning Jan. 1, 2017.
At the same time, the system saw operating expenses rise 2 percent to $2.2 billion, up from $2.1 billion in the first quarter of 2017. Year over year, a 2.8 percent increase in labor costs and 5.1 percent incline in supplies costs contributed to the first quarter’s rising expenses.
Including nonoperating gains, Baylor Scott & White ended the first quarter of 2018 with $290.9 million in net income, up nearly 60 percent from $182.1 million reported in the same period a year prior.
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