Greensboro, N.C.-based Cone Health recorded an operating margin of 1.7 percent for the nine months that ended June 30, compared to an operating margin of 4.4 percent in the same period of the year prior.
The system reported operating revenues of $1.3 billion in the first three quarters of its fiscal year, up 8.6 percent from $1.2 billion in the same period ended June 30, 2015.
However, Cone Health saw operating expenses rise 11.7 percent year over year, outpacing the growth in revenue. The system said supplies costs were up 12.7 percent in the nine months that ended June 30, compared to the same period of the year prior. The system said that growth was driven, in part, by supplies for intensive inpatient surgeries and increased spending on cancer treatment drugs.
Cone Health ended the first three quarters of its fiscal year with operating income of $21.7 million, down from operating income of nearly $51 million in the same period of the year prior.
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