El Camino Hospital posted operating income of $8.7 million for October 2018, according to its latest financial report, which is cited by the Mountain View Voice. At the same time, it lost $34.3 million on nonoperating income, or investments.
The hospital invests surplus cash into an investment portfolio. The portfolio has grown significantly during the past five years, from roughly $500 million to almost $945 million as of Sept. 30, 2018.
El Camino Hospital CFO Iftikhar Hussain told the publication that while the hospital took a big hit on its investments in 2018, the 2017-18 and 2018-19 fiscal years each boosted the hospital’s earnings by $60 million.
“Keep in mind that we’re having a bad year this year, but a bigger point really here is, over the long term, you’re getting a greater return,” Mr. Hussain told the Mountain View Voice. “It’s only an issue if you’re immediately trying to get money out, and if you start timing the market you are taking a really speculative position.”
Click here for the full report.
More articles on healthcare finance:
A recession is coming: What it could mean for healthcare
CHS expects $900M gain from hospital divestitures in 2019
Pennsylvania hospital employees work without pay
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.