Cleveland Clinic posts $467.5M operating surplus

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Cleveland Clinic reported a $467.5 million operating surplus on $6.7 billion in revenue for the year ended Dec. 31, 2014, compared to an operating surplus of $294 million on $6.5 billion in revenue the preceding year.

The 11-hospital system kept its expenses under control in 2014, with its supply costs falling from $639.8 million in 2013 to $627.5 million in 2014. However, the system's expense related to pharmaceuticals grew from $494.5 million in 2013 to nearly $559 million in 2014.

Like other systems in states that have expanded Medicaid, Cleveland Clinic saw its costs associated with providing charity care go down in 2014 — falling to $101 million from $171 million in 2013.

After factoring in the system's lower investment return in 2014, Cleveland Clinic's excess of revenue over expenses was $703.6 million, down from $900 million the prior year.

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