Montefiore Health System revenue rises, operating margin falls in Q1

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Bronx, N.Y.-based Montefiore Health System saw operating revenue increase year over year in the first quarter of 2019, but the system’s operating margin and operating income dipped amid rising expenses, according to recently released financial documents.

The system — which includes Montefiore Medical Center — recorded operating revenue of $1.5 billion in the three months ended March 31. That's a 7.7 percent increase year over year, partially attributable to higher net patient service revenue.

Montefiore Health System also saw operating expenses climb in the first quarter of 2019, to $1.5 billion, compared to $1.4 billion in the same period a year prior.

The system ended the three-month period with operating income of $1.2 million, a 73.9 percent decline from operating income of $4.5 million in the first three months of 2018.

After factoring in nonoperating gains and losses, Montefiore Health System recorded net income of $39.2 million in the first quarter of 2019, up from net income of $3.3 million in the same period last year.

The system's operating margin decreased, from 0.32 percent in  the first quarter of 2018 to 0.08 percent in the first quarter of 2019.

Hospital officials attributed the system's latest financial results to lower inpatient hospital admissions and higher expenses.

"Outpatient volume continues to rise, and hospital admissions are down. While this puts pressure on our financial performance, it is reflective of our overall mission: making care available and accessible to people in our ambulatory settings, their homes, schools and communities, which in turn keeps people healthier and out of the hospital," the health system stated in a news release.

"Rising labor expenses and low government reimbursement rates, which cover 85 percent of our patient population, negatively affect our bottom line. Despite these pressures, we continue to provide exceptional care to all who need it," the statement said.

 

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