Cleveland Clinic's annual net income drops 91% on heavy investment losses

Cleveland Clinic's revenue increased in 2018, but the system's operating income and net income declined year over year, according to audited financial documents released March 14.

Cleveland Clinic's revenues climbed to $8.9 billion in 2018, up more than 6 percent from $8.4 billion in the year prior. The boost was largely attributable to higher net patient service revenue, which increased 3 percent year over year.

Increases in operating expenses outpaced Cleveland Clinic's revenue growth. The system's expenses were up nearly 8 percent year over year in 2018. Expenses grew across all categories, including supplies, administrative services, and salaries, benefits and wages, according to the financial documents.

Cleveland Clinic ended last year with operating income of $266.4 million, down from $330.6 million in 2017.

During 2018, Cleveland Clinic's nonoperating losses totaled $162.5 million. That's compared to 2017, when the system reported nonoperating gains of $819.8 million. The decline is primarily attributable to a $191.2 million investment loss in 2018 due to turbulent financial markets, which was partially offset by other nonoperating gains.

After factoring in nonoperating losses, Cleveland Clinic ended 2018 with net income of $103.9 million, down 91 percent from $1.2 billion in the year prior.

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