Hospitals operating in and near Detroit saw their operating incomes climb $100 million-plus in 2016, marking the second year that level of operating growth occurred, according to a review of Medicare cost report data for 2016.
The Michigan Health Market Review 2017: Part Two, conducted by independent healthcare analyst Allan Baumgarten, found operating income grew from $133.7 million in 2015 to $238.6 million in 2016.
The review also found Detroit hospitals achieved net income of $655.5 million in 2016. Net income for the hospitals, which are consolidated into six health systems, reflected 5.5 percent of nearly $12 billion in net patient revenues in 2016. That's up from $535.5 million in net income recorded the year prior.
Southfield, Mich.-based Beaumont Health improved its net income for the third consecutive year. The system, which holds 32 percent of the market, grew its net income from $301.6 million in 2015 to $360.5 million in 2016. Grand Blanc, Mich.-based McLaren Health Care hospitals also saw their net income increase during the same period, from $19.2 million in 2015 to $83.3 million in 2016.