Trinity Health sees operating income plummet 51.7%

Trinity Health saw its revenue increase 10 percent in the first quarter of fiscal year 2016 to $3.8 billion, but after accounting for rising expenses, the Livonia, Mich.-based health system saw its operating income fall.

The increase in revenue in the quarter that ended Sept. 30 was partially attributable to seeing more patients. Trinity reported an increase in outpatient and emergency room visits, which increased 4.7 percent and 6.7 percent year over year, respectively.

Trinity reported operating income of $48.3 million in the first quarter of FY 2016, down 51.7 percent from nearly $100 million in the same period of last year. The decline was attributable to rising labor and supply costs as well as the costs associated with the acquisition of St. Joseph's Hospital and Health in Syracuse, N.Y.

Trinity said its operating expenses increased 11.8 percent to $3.7 billion in the first quarter of FY 2016. Excluding the acquisition of St. Joseph's, Trinity reported its operating expenses grew 6.7 percent year over year.

The health system ended the first quarter of FY 2016 with an operating margin of 1.3 percent, down from a margin of 2.9 percent in the same quarter of the year prior.

Trinity posted a net loss of $287.2 million in the first quarter of FY 2016, down significantly from a net gain of $118.3 million in the same period of FY 2015.

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