Orlando (Fla.) Health has reported an operating income of $118.2 million in the second quarter, a $18.7 million (14 percent) decrease from the prior year period. Its operating margin dropped from 10.1 percent in the second quarter of 2022 to 7.9 percent in the same period this year.
Second-quarter revenue increased 10 percent year over year to $1.49 billion while expenses rose 12.7 percent to $1.37 billion. Within expenses, labor costs rose 17.9 percent to $734.4 million, according to financial documents published Aug. 24.
Net patient service revenue for the quarter increased $217.4 million (19 percent) compared to the prior year period due to increases in both adult and newborn/NICU admissions and emergency department patients treated, according to the health system. Outpatient surgery cases increased 8.9 percent and emergency room visits increased 5.7 percent year over year.
During the quarter, unrestricted cash and investments increased $171.9 million (5.3 percent) and accounts receivable increased $43.8 million (6.8 percent). The days of revenue in accounts receivable — based on one year of net patient service revenue — were 48.9 days at June 30, 2023, compared with 47.8 days at March 31, 2023.
After factoring in nonoperating items, Orlando Health posted a net income of $190.9 million in the second quarter, compared with a net loss of $150.9 million in the same period in 2022.