Boston Children's operating income plummets 71% in Q1

Boston Children's Hospital recorded higher revenue in the first quarter of fiscal year 2016 than a year earlier, but those gains were offset by a spike in expenses, according to the Boston Business Journal.

The 404-bed pediatric hospital said net patient service revenue increased $15.4 million year over year to $276.7 million in the first quarter of FY 2016. The financial boost was largely attributable to an increase in patient volume, according to the report.

However, the hospital said expenses increased 10 percent year over year to $368 million in the first quarter of FY 2016. That growth was fueled by a 19 percent increase in supply costs, which hit $115.8 million in the first quarter of FY 2016.

Boston Children's ended the first quarter of FY 2016 with operating income of $6.9 million, down 71 percent from the $23.6 million recorded in the same period of the year prior.

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