Trinity Health's operating income leaps 62% in Q2

Livonia, Mich.-based Trinity Health saw operating revenue and operating income improve in the second quarter of fiscal year 2018, driven by volume growth and cost containment strategies, according to recent bondholder documents.

The nonprofit 94-hospital system posted operating revenues of $9 billion in the second quarter of 2018, up 3.6 percent from $8.7 billion posted in the same period a year prior. The system also recorded $178 million in operating income, up 62 percent from $110 million reported in the same period in 2017.

Net revenue growth of $314 million, led by a 2.4 percent increase in case mix adjusted equivalent discharges and payment rate and case mix increases of 2.2 percent, positively affected the results.

The system's cost containment strategies led to $246 million in savings, with $170 million of that coming from Trinity Health's leadership system and transforming operations, as well as improvements in length of stay and productivity.

Trinity Health ended the second quarter of 2018 with net income of $806 million, up 9.4 percent from $737 million posted in the same period a year prior.

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