Centegra ends FY 2017 with $62.3M operating loss

Crystal Lake, Ill.-based Centegra Health System ended fiscal year 2017 with an operating loss, despite an uptick in revenues, according to recently released unaudited financial statements.

Centegra said operating revenues rose to $564.2 million in the fiscal year ended June 30, up 12.7 percent from the year prior, according to the Northwest Herald.

The health system's expenses also increased in the most recent fiscal year. Centegra reported operating expenses of $626.5 million in fiscal year 2017. That's a 26.3 percent increase compared to fiscal year 2016, according to the report.

Centegra has cited the opening of its hospital in Huntley, Ill., and a rise in uncompensated care as factors causing its operating costs to rise.

Centegra ended the most recent fiscal year with an operating loss of $63.2 million, which is a significant change from the $4.3 million operating surplus the system recorded in fiscal year 2016, according to the Northwest Herald.

In an effort to cut costs, the health system announced in June plans to end acute inpatient care at its 108-bed hospital in Woodstock, Ill. The move has been projected to save $15 million annually, reports Northwest Herald.

The health system also continues to move toward finalizing a partnership agreement with Chicago-based Northwestern Medicine.

 

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