Mercy's operating income falls 59% in most recent quarter

Morgan Haefner -

Chesterfield, Mo.-based Mercy reported a drop in operating income in the three months ended Sept. 30, as operating expenses related to a recent acquisition climbed.

The 44-hospital system saw net operating income fall 58.6 percent to $12.4 million in the three months ended Sept. 30, according to unaudited financial documents. That's compared to $30 million in operating income recorded in the same period a year before. The system's operating margin also fell to 0.8 percent, compared to 2.2 percent in the same period a year prior.

At the same time, Mercy's operating expenses climbed 13.5 percent. The system reported operating expenses of $1.5 billion, compared to $1.3 billion in the same quarter a year prior. Mercy attributed the increase primarily to supplies and salary expenses related to its acquisition of St. Anthony's Medical Center in St. Louis, which was effective June 1, 2017.

Mercy ended its most recent fiscal quarter with an 11.9 percent increase in operating revenue. The system reported operating revenue of $1.5 billion in the three months ended Sept. 30, up from $1.3 billion in the same period a year prior. Again, Mercy attributed the change to its St. Anthony's Medical Center acquisition, which increased patient volumes.

Including nonoperating gains, Mercy ended its most recent quarter with net income of $55.9 million, down 30.4 percent from $80.3 million recorded in the same period last year. 

This article was updated Nov. 30, 2017, at 1:55 p.m.

More articles on healthcare finance:
9 latest hospital credit downgrades
This week's 5 must-reads for hospital RCM leaders
Fitch: Rating downgrades will likely outweigh upgrades for US healthcare companies in 2018
 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.