For the fiscal year ended June 30, expenses at St. Joseph Health totaled $5.65 billion, up from $4.91 billion in 2013. The rise in expenses was partly driven by $125.4 million in professional fees and purchased services to expand the system’s medical foundation and recruit physician specialties in some communities. Spending related to compensation and benefits also rose from $2.18 billion in FY 2013 to $2.47 billion in FY 2014.
In March 2013, St. Joseph Health affiliated with Newport Beach-based Hoag to operate together as Covenant Health Network, and financial results for FY 2014 include Hoag operations for the full year. Excluding Hoag’s performance, St. Joseph Health saw a 9.5 percent year-over-year increase in outpatient volumes. However, also excluding Hoag, the system saw a 4.5 percent decline in inpatient discharges and a 3.4 percent drop in patient days in FY 2014, compared with the previous year.
Still, including investment income, the health system reported an overall surplus of $292.8 million, up from $1.88 million in 2013.
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