Los Angeles-based Cedars-Sinai Medical Center saw operating income fall in the first quarter of fiscal year 2018 as patient revenue declined.
The nonprofit medical center recorded revenue of $791 million in the three months ended Sept. 30, down about 2 percent from $810 million reported in the same period last year, according to unaudited financial documents. Cedars-Sinai saw net patient service revenue decline 3.5 percent to $722 million in the first quarter of 2018, after excluding the hospital fee program. The medical center achieved less revenue than budgeted in the most recent quarter due to lower Medicare and commercial insurer payments from decreased patient acuity.
At the same time, Cedars-Sinai saw expenses fall in the first quarter of 2018 to $726 million. That is down 1.5 percent from $737 million in expenses the hospital incurred in the same period last year. The decline reflects lower supplies costs and professional fees.
Including these results, Cedars-Sinai ended the first quarter of 2018 with operating income of $65 million, down nearly 11 percent from $73 million reported in the same period a year prior.