Premier Health posts million-dollar net loss in FY 2018

Morgan Haefner - Print  | 

Dayton, Ohio-based Premier Health saw its revenue improve in fiscal year 2018, but ended the 12-month period with operating and net losses.

For the year ended Dec. 31, 2018, the nonprofit health system reported total operating revenue of $1.8 billion, up $66.1 million from fiscal 2017, according to unaudited financial documents. Premier attributed the increase primarily to improved payer mix and consolidation of an equity investment into its financial statements.

The revenue gains were partially offset by lower patient volumes related to the July 2018 closure of Good Samaritan Hospital, also in Dayton. Premier said its inpatient admissions and observations, emergency room visits and total surgeries were all lower in 2018 than the prior year.

The system recorded charges of $29.1 million in fiscal 2018 resulting from the closure. Overall, Premier ended fiscal 2018 with total operating expenses of $1.9 billion, up $76.7 million year over year. Premier also noted it has made significant investments in its infrastructure and will continue to do so in 2019.

"These investments in turn have impacted operating margins through significant levels of depreciation," the system said. Premier's operating loss was $131.6 million in fiscal 2018 compared to a $121 million loss for fiscal 2017.

After accounting for a $44.8 million nonoperating loss primarily driven by unfavorable investment performance, Premier recorded a $1.1 million net loss in fiscal 2018. That's compared to a $48.1 million net gain in fiscal 2017.

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