That’s down from 2012 profit of $367.9 million, which represented 3.4 percent of net patient revenues.
Mr. Baumgarten said Detroit-area hospitals were able to offset larger operating losses in 2013 with $549.5 million in other revenues, such as investments, philanthropy and government grants. Warren, Mich.-based St. John Providence hospitals had the largest improvement in financial results and posted an average margin of 6 percent in 2013, according to the report. Dallas-based Tenet Healthcare’s Detroit Medical Center hospitals, which had reported steadily improving profits from 2009 to 2012, broke even in 2013.
While profit at Detroit-area hospitals dropped in 2013, the major hospitals in other parts of the state improved their revenues and net income that year, according to the report. An analysis of 2013 data for 41 hospitals located in other parts of the state showed their combined net income grew from $554.7 million in 2012 to $847.1 million in 2013.
Mr. Baumgarten said eight of these hospitals had margins above 10 percent, including St. Louis-based Ascension Health’s Borgess Medical Center in Kalamazoo, and McLaren Health Care’s hospitals in Bay City, Flint and Petoskey.
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