Trinity Health revenue increases, but operating margin shrinks

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Trinity Health saw revenue increase in fiscal year 2016, but higher expenses caused the Livonia, Mich.-based system's operating margin to decline.

Trinity reported revenue of $16.3 billion in FY 2016, a 14 percent year-over-year increase from revenue of $14.3 billion in FY 2015, according to recently released audited financial documents

Higher expenses offset the system's revenue growth. Trinity reported operating expenses of $16.2 billion in FY 2016, up 16.7 percent from FY 2015. The system's acquisitions of Syracuse, N.Y.-based based Saint Joseph's Hospital Health Center and Hartford, Conn.-based Saint Francis Care accounted for $1.4 billion, or 10.3 percent, of the year-over-year growth in expenses. Trinity also reported higher costs related to salaries and wages, supplies and purchased services.

The system ended FY 2016 with operating income of $46.4 million, down from $457.7 million in the year prior. Excluding asset impairment charges and a premium revenue adjustment, Trinity recorded operating income of $151.3 million in FY 2016, down from operating income of $470 million in FY 2015. Trinity recorded an operating margin of .9 percent in the most recent fiscal year, compared to an operating margin of 3.3 percent in FY 2015.  

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