Trinity Health's operating income grows 50% in FY 2018

Livonia, Mich.-based Trinity Health reported higher revenue and operating income in fiscal year 2018 than in the year prior.

Here are five things to know:

1. Trinity Health reported revenues of $18.3 billion in fiscal year 2018, up 4.1 percent from $17.6 billion in the year prior. The increase is largely due to growth in patient volumes, payment rates and case mix, Trinity said in a news release.

2. Expenses climbed 3.4 percent year over year to $17.9 billion in fiscal year 2018, which ended June 30. "Trinity Health continues to undertake targeted efficiency initiatives to improve performance and address unfavorable industry trends," Trinity said. "These initiatives focus primarily on labor, productivity, supply costs, and clinical and administrative operations."

3. The health system recorded $264.4 million in asset impairment charges in fiscal year 2018. Officials said transitioning to a single, enterprise-wide EHR and revenue cycle management platform resulted in $107.8 million of the impairments. "The single, fully integrated record system will enable Trinity Health to improve the experience of both its patients and physicians, supporting the system's people-centered strategy," Trinity said.

4. Excluding the impairment charge, Trinity Health ended fiscal year 2018 with operating income of $401.3 million. That's up 50.8 percent from fiscal year 2017, when Trinity reported operating income of $266.2 million.

5. After incorporating nonoperating gains, Trinity reported net income of $901.5 million in fiscal year 2018, down from $1.3 billion in the year prior.

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