Mishawaka, Ind.-based Franciscan Alliance posted operating income of $211.3 million for the year ended Dec. 31, 2014, up from $36.7 million in 2013.
The system's operating margin grew to 7.8 percent in 2014 compared to 1.4 percent the prior year.
Franciscan Alliance's operating income for 2014 includes 18 months of the Indiana Hospital Assessment Fee program, which produced a net benefit of $37.2 million through Dec. 31, 2014. The system's operating results for 2014 also include $14.5 million in state disproportionate share hospital payments.
The system's operating expenses were down 2.6 percent in 2014 compared to the prior year. Salaries, associated benefits and physician fees decreased 10 percent to $136.7 million in 2014, primarily due to improved productivity, decreased patient volumes and reduced benefit expenses.
The system posted a $261.2 million profit for the year ended Dec. 31, 2014, up from $244 million the prior year.
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