Denver Health's operating income falls 76%, but net income soars year to date

Morgan Haefner - Print  | 

Denver Health saw its operating income fall year to date, but its net income improved year over year thanks to investment gains, according to unaudited financial documents.

For the period ending June 30, Denver Health posted operating revenue of $515.6 million, down 5 percent from $544 million the year prior. At the same time, Denver Health's total operating expenses decreased 4 percent to $513.4 million compared to $534.7 million in the same period a year prior. Denver Health attributed the revenue and expense decreases to moving its Medicaid Choice plan to the Denver Health Medical Plan.

Denver Health posted a $2.2 million operating gain year to date, which is down 76 percent compared to $9.4 million in the year prior. The health system said the change was driven by the net effect of reduced Medicaid Choice income due to lower membership.

The health system ended the year with net income before capital contributions of $23.7 million, more than triple the $7.6 million Denver Health reported in the same period a year prior. That's up $16 million over year. Denver Health said the difference between operating income and net gain performance was driven by the unrealized gain on investments in 2019 of $15.7 million.

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