Cadence operating margin down, total surplus up in FY 2014

Winfield, Ill.-based Cadence Health — which recently merged with Chicago, Ill.-based Northwestern Memorial Healthcare — saw its operating margin drop to 9.6 percent for fiscal year 2014 from 11 percent in fiscal year 2013, although its overall surplus rose by 44 percent to $211.3 million.

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For the fiscal year ended June 30, Cadence reported $1.28 billion in total revenue, up from $1.13 billion in fiscal year 2013. However, expenses also increased from approximately $1 billion to nearly $1.16 billion. Still, Cadence saw almost $89 million from investment return, unrestricted contributions and other gains, up from $84.7 million the previous year. In fiscal year 2013, the system also sustained a $61.2 million loss from impairment of note receivable and joint venture investment.

Cadence merged with Northwestern effective Sept. 1, combining the two health systems into one entity (Northwestern Medicine) thatincludes four hospitals: Northwestern Memorial Hospital in Chicago; Northwestern Lake Forest (Ill.) Hospital; Central DuPage Hospital in Winfield; and Delnor Hospital in Geneva, Ill.

More articles on health system finances:
Moody’s affirms Carolinas HealthCare System’s ‘Aa3’ rating 
Geisinger operating margin drops to 3.4% for FY 2014 
University of Michigan Health System plans operating room expansion 

 

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