Beacon Health improves operating results, but ends FY 2018 with net loss

South Bend, Ind.-based Beacon Health System saw its revenue increase in fiscal year 2018; however, the health system ended the year with a net loss due in part to investment performance.

The nonprofit health system posted revenues of $1 billion for the year ended Dec. 31, 2018, up from $943.4 million recorded in the previous fiscal year, according to unaudited financial documents. Beacon Health also saw expenses increase year over year to $964.3 million in fiscal 2018, up from $912.1 million a year earlier, thanks in part to higher labor and supply costs.

For fiscal 2018, Beacon Health System reported operating income of $58.6 million, an improvement from $31.3 million recorded in fiscal 2017. Management attributes the improvement to significant volume increases that outpaced operating expenses.

At the same time, the health system's investment income performance fell in 2018 compared to the year prior, as Beacon Health posted an investment loss of $21.9 million compared to an $82.5 million gain in 2017. After including nonoperating results, including a $118.1 million settlement loss, Beacon Health ended fiscal 2018 with a $79.8 million net loss, compared to net income of $120.3 million in the year prior.

More articles on healthcare finance:
Tenet shrinks loss to $5M, plans new $200M cost-cutting drive
Indiana hospital to close in April
CMS cuts payments to 800 hospitals for patient safety incidents

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months