Beaumont Health's revenue rises to $1.15B, but operating income declines in first three months of 2019

Southfield, Mich.-based Beaumont Health saw revenue increase in the first three months of 2019; however, the health system's operating income dropped amid rising expenses, according to recently released financial documents.

Beaumont reported total revenue of $1.15 billion in the first quarter of 2019, up 2.1 percent from $1.13 billion in the same period a year prior. The growth was attributable to stronger case mix and payer mix, as well as the system's strategic managed care contract rate increases that were included in its 2019 plan, CFO John Kerndl told Becker's via email.

The system's expenses also increased in the quarter that ended March 31. Beaumont reported operating expenses of $1.11 billion in the first three months of 2019, up 3.7 percent from $1.07 billion in the first quarter of 2018.

Beaumont ended the first quarter of 2019 with new operating income of $37.6 million, down from $54.2 million in the same period a year prior.

After incorporating nonoperating income, the system's net income totaled $129.1 million in the first three months of 2019, up from $10.1 million.

Mr. Kerndl said net income growth is attributable to the net revenue growth as well as non-operating gains, which are primarily due to investment returns and the performance of the system's investment portfolio compared to the first quarter of 2018.

 

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