Operating profit fell from $205.7 million in 2012 to $131.8 million last year. However, Inova, which owns five acute-care hospitals and a children’s hospital, recorded $662.5 million of total profit in 2013 — an 83 percent increase from $362.9 million in 2012. Most of that total involved investment gains that were reclassified into Inova’s total nonoperating revenue side of the balance sheet.
Overall, Inova posted a 5.2 percent operating margin on $2.54 billion of revenue. Net patient service revenue actually fell in 2013 due to soft delivery and surgical volumes, but Inova’s total revenue increased year-over-year thanks to its recently acquired Medicaid health plan.
Other key financial data Inova reported in FY 2013:
• Medicare electronic health record incentives totaled $13.3 million.
• Inova spent $95 million on the implementation of its Epic EHR and revenue cycle systems in 2013, compared with $49.4 million in 2012. As of Dec. 31, all of Inova’s hospitals and most its ambulatory sites have gone live on both Epic platforms.
• The health system made $365 million in capital expenditures last year, most of which went to the renovation of Inova Fairfax Hospital in Falls Church.
• Inova offered a lump sum buyout to its retirees who received less than $500 per month through their pension. The strategy resulted in a one-time cost of $3.4 million.
• As of Dec. 31, Inova had almost 600 days cash on hand, similar to 2012.
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