Cleveland Clinic's operating margin slips in first half of 2016

Cleveland Clinic ended the first half of this year with an operating margin of 1.2 percent, compared with a 5.6 percent operating margin in the same period of last year.

The 13-hospital system recorded revenue of $3.9 billion in the six-month period that ended June 30, up 16.6 percent from the same period of 2015. That financial boost was largely attributable to an increase in patient service revenue.

However, rising expenses offset revenue gains. Cleveland Clinic saw a 22.5 percent year-over-year increase in expenses, as labor, supplies and pharmaceutical costs grew.

The system ended the first half of this year with operating income of $47.7 million, down from an operating income of $188.5 million in the same period of the year prior.

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