Cleveland Clinic's 2013 Total Profit Exceeds $900M

Despite a difficult year for many nonprofit hospitals and networks, Cleveland Clinic Health System finished 2013 with large increases in operating income, total profit and revenue.

ClevelandClinicCleveland Clinic's total profit last year was $900.1 million, a 46.7 percent jump from fiscal year 2012. Massive investment and derivative gains propelled the system's growth. Operating profit in 2013 totaled almost $294 million on $6.45 billion of revenue, giving Cleveland Clinic a 4.6 percent operating margin. The operating margin was almost double that of 2012, when the organization posted $157.1 million of operating income on $6.19 billion of revenue.

Expenses have been rising rapidly across the hospital sector, but Cleveland Clinic held them in check last year, a major reason why the system was able to post high margins. While revenue increased 4.3 percent year-over-year, Cleveland Clinic's expenses only rose 2.6 percent.

Other financial highlights from Cleveland Clinic's report include:

•    $23.7 million of Medicare and Medicaid electronic health record incentives in 2013, compared with $32.1 million in 2012.

•    Charity care totaled $171 million, or about 2.7 percent of net patient service revenue.

•    About 61 percent of net patient service revenue came from commercial payers. Medicare comprised 29 percent, while the remaining 10 percent was Medicaid and self-pay — almost identical to figures from 2012.

Cleveland Clinic Health System operates 11 hospitals with about 3,500 staff beds, including its flagship academic medical center in downtown Cleveland, and it also has an international presence in Canada and United Arab Emirates.

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