James Connelly, CFO of Henry Ford Health System, said the decrease in net income was directly related to two factors: a loss in investment income and the closure of the system’s hospital in Warren, Mich.
Investment income fell 59 percent from 2010 to 2011. The closure of Henry Ford Macomb Hospital-Warren, which was effective March 31, resulted in a one-time write-off of $19 million for the hospital and equipment. The facility was forced to close after it lost $70 million over the past five years and had only 5 percent of the market share.
Total revenue rose 3.4 percent, from $4.08 billion in 2010 to $4.22 billion in 2011. “Henry Ford Health System continues to grow and increase market share,” Henry Ford Health System CEO Nancy Schlichting said in the release. “Last year our admissions grew by 1.7 percent to 101,336 total admissions, the highest of any health system in southeast Michigan.”
Henry Ford Health System, which won the 2011 Malcolm Baldrige National Quality Award, also reported a 5.5 percent increase in uncompensated care.
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