In fiscal year 2013, University Hospitals in Cleveland recorded more than $78.6 million in operating profit — a 21 percent increase from 2012.
Revenue climbed 3.3 percent to $2.34 billion, giving UH a 3.4 percent operating margin on the year. Total profit, including investment income, more than tripled year over year to $173.3 million. UH executives attributed the revenue growth and higher operating earnings to commercial payer rate increases, enhanced Medicaid payments and solid expense management.
The healthy year for UH comes despite lower inpatient and outpatient volumes. Inpatient activity, including discharges and observations, fell 1.9 percent. Outpatient volumes dropped 0.9 percent. However, inpatient and outpatient surgical cases were both up 4.8 percent each. Emergency room visits also rose 3 percent.
UH's systemwide payer mix in FY 2013 was 41.5 percent commercial, 30 percent Medicare, 16 percent Medicaid and almost 12.5 percent uninsured and self-pay.
Last year, UH continued its aggressive expansion to keep up with in-town competitor Cleveland Clinic. The system acquired Parma (Ohio) community General Hospital and EMH Healthcare in Elyria, Ohio, which will impact UH's balance sheet for 2014. In January, UH also signed a letter of intent to buy Robinson Memorial Hospital in Ravenna, Ohio. If that deal goes through, UH will operate 15 hospitals.
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