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.
More articles on healthcare finance:
How to shatter the CFO stereotype
CFO Brian Steines: Advocate of financial transparency and Mizzou fan
Franciscan Alliance improves productivity, operating income soars 476%
