Fairview Health posts operating loss, but sees net income grow in first half of 2019

Minneapolis-based Fairview Health Services reported an operating loss in the first half of fiscal year 2019, but ended the period with higher net income thanks to favorable performance on investments. 

For the six months ended June 30, Fairview posted total operating revenue of $3 billion, up 5.3 percent year over year from $2.8 billion, according to unaudited financial documents. Fairview said key drivers contributing to the revenue growth were new volumes from specialty services and new clinics, among other factors.

At the same time, Fairview posted total operating expenses of $3 billion, up 8.7 percent from $2.8 billion a year prior. The health system pointed to increases in salaries and benefits and pharmaceutical cost inflation as some of the key drivers of expense growth. 

Fairview recorded a $32.5 million operating loss in the most recent six-month period, compared to an operating gain of $60.1 million in the same period of fiscal 2018. After accounting for nonoperating gains, including $183.6 million in investment earnings, Fairview ended the first half of 2019 with net income of $122.6 million, nearly twice as much as the $63.1 million the health system reported in the same period of 2018.  

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