CHI's operating loss shrinks to $73M in Q1

Englewood, Colo.-based Catholic Health Initiatives saw its revenue increase and operating loss shrink in the first quarter of its fiscal year 2019, which ended Sept. 30, according to unaudited financial documents released Nov. 29.

CHI's operating revenues climbed 0.9 percent year over year to $3.73 billion in the first quarter of fiscal 2019. The slight boost was primarily attributable to higher net patient service revenue.

CHI kept its expenses in check in the first quarter of fiscal 2019. The health system's expenses before restructuring, impairment and other one-time losses totaled $3.78 billion in the first quarter of fiscal 2019, compared to $3.76 billion in the same period a year earlier.

After factoring in restructuring, impairment and other losses, CHI recorded an operating loss of $73.44 million in the first quarter of fiscal 2019. That's compared to the same period of the year prior, when the health system reported an operating loss of $77.89 million.

In its financial documents, CHI provided updates on acquisitions, affiliations and divestitures it has in the works. The health system announced plans earlier this year to divest its health insurance business. CHI said it expects to complete the sale of its commercial insurance operations during fiscal year 2019.

The health system is also inching closer to completing its proposed merger with San Francisco-based Dignity Health. CHI and Dignity signed a definitive agreement to merge in December 2017, and the organizations expect to complete the transaction by the end of this year. The new $28.4 billion health system will include more than 700 care sites and 139 hospitals.

More articles on healthcare finance:

Cleveland Clinic's operating income jumps 76% in Q3
Fitch: Healthcare profit margins will face pressure in 2019
Tower Health attributes operating loss to Epic install, acquisition costs

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