Total operating revenue was $1.02 billion for the second quarter of this year, compared with $953.8 million in the second quarter of 2013. Operating expenses also rose by 7.4 percent in the second quarter of 2014 to nearly $950 million. THR’s operating income for the three months ended June 30 was $73.4 million, up 5.3 percent from $69.7 million in 2013.
However, for the six months ended June 30, THR reported a surplus of just $221.8 million on $1.97 billion in total operating revenue, down from a surplus of $263.3 million on $1.87 billion in total operating revenue for the first half of 2013. The decrease was partly driven by a 4.4 percent rise in salaries, wages and other benefits to $999.4 million and a nearly 13 percent increase in other operating expenses to $416.3 million. THR also reported a $13.3 million net unrealized loss on investments.
Earlier this month, Moody’s Investors Service revised its outlook for THR from stable to positive, based on the expectation that the health system will maintain a strong cash flow to sustain good debt coverage measures, support capital spending plans and maintain or grow liquidity.
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