Geisinger's operating income jumps 38% in first 9 months of fiscal year

Danville, Pa.-based Geisinger recorded operating income of $145.9 million in the first nine months of fiscal year 2018, up 38 percent from the same period a year earlier, according to recently released bondholder documents.

Geisinger's revenues climbed 8.8 percent year over year to $5.1 billion in the nine months ended March 31. The growth was attributable to a 4.6 percent increase in patient service revenue and a 13 percent increase in premium revenue.

The health system also benefited from an increase in patient volume. Geisinger said discharges were up 3.5 percent in the nine months ended March 31, compared to the same period a year earlier. This growth was attributable to expansion of Geisinger's clinical programs.

Geisinger also realized gains of $17.7 million from the sale of two skilled nursing facilities in January, which helped push the system's operating income higher.

Higher expenses offset some of the health system's revenue gains in the first nine months of the current fiscal year. Geisinger's expenses totaled nearly $5 billion in the nine months ended March 31, compared to $4.6 billion in the same period of the year prior.

Geisinger ended the first nine months of fiscal year 2018 with a net surplus of $356.9 million, compared to $352.8 million in the same period a year earlier.

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