Northwestern Memorial's operating surplus climbs post merger

Ayla Ellison (Twitter) - Print  | 

Chicago-based Northwestern Memorial Healthcare's operating surplus increased and the system's overall surplus fell in the three months ended Feb. 28.

Northwestern closed its merger with Winfield, Ill.-based Cadence Health in September 2014. Under the agreement, Northwestern Medicine, a fully integrated health system, was expanded to include four hospitals.

Northwestern's operating surplus increased about 15 percent to $95.7 million in the three months ended Feb. 28, compared to the unaudited combined pro forma results of Northwestern and Cadence for the comparable period of the preceding year. Revenue climbed to about $983 million from $922.6 million.

The pro forma results were calculated as if the Cadence acquisition had occurred in September 2013 instead of September 2014.

Northwestern's total surplus for the three-month period fell to $152.7 million, down from the combined numbers for the same period of fiscal 2014 of $200.2 million.

Northwestern posted a $66.3 million operating surplus on total revenue of $937.8 million in the first quarter of fiscal 2015.

More articles on healthcare finance:

CMS' 2016 IPPS proposed rule: 10 points to know
Senate Republicans hesitant to support Medicare overhaul plan
Too soon to commit to one post-acute bundled payment approach, AHA says

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.