Beaumont Health operating revenue, operating income increase, but net income sinks 56% in 2018

Southfield, Mich.-based Beaumont Health saw operating revenue and operating income increase in 2018, but investment losses and rising expenses offset the system’s financial gains, according to recently released financial documents.

The eight-hospital nonprofit system reported operating revenue of $4.66 billion for the year ended Dec. 31, up 5 percent from $4.44 billion reported in the year prior.

The growth is partly attributable to net patient revenue, which rose 6.2 percent to $4.43 billion in 2018 from $4.17 billion in 2017.

Beaumont Health’s expenses also grew. The system said expenses increased 5 percent year over year to $4.49 billion in 2018.

Beaumont Health ended 2018 with operating income of $240.7 million, up from $168.6 million in 2017.

After factoring in nonoperating items, the system ended 2018 with net income of $142.1 million attributable to Beaumont Health. That's down 56 percent from 2017, when the system posted net income of $321.6 million.

The decline was largely attributable to investment losses of $65 million and a cardiology federal settlement payment of $74 million.

 

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