El Camino Hospital took big hit on $1B investment

While El Camino Hospital is still profitable, the Mountain View, Calif.-based hospital lost money on its nearly $1 billion portfolio, according to the Mountain View Voice.

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.

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