Livonia, Mich.-based Trinity Health reported an operating loss of $38.6 million for the first six months of fiscal year 2024 after reporting a $298 million loss over the same period last year, according to its Feb. 23 financial report.
Five things to know:
1. The health system said the "substantial reduction in losses" reflected improved inpatient care volumes, as well as several revenue and cost management initiatives.
2. The health system posted a total operating revenue of $11.6 billion for the six-month period ended Dec. 31, up from $10.5 billion over the same period last year. Trinity said the revenue growth was driven by the acquisitions of Des Moines, Iowa-based MercyOne in September 2022; Grand Haven, Mich.-based North Ottawa Community Health System in October 2022; and Davenport, Iowa-based Genesis Health System in March 2023. These acquisitions contributed $692.3 million to the increases.
3. Net patient service revenue grew $423.5 million and was positively affected by improvements in patient volumes and payment rates ("inclusive of a $121.6 million accrual for the CMS 340B remedy lump sum settlement") and, to a lesser extent, case mix.
4. The system reported non-operating income of $738.7 million over the six-month period, up from $264.6 million over the same period last year, according to the report. Trinity said the increase was driven by investment earnings of $475 million.
5. Total expenses were $11.7 billion for the six-month period, up from $10.7 billion over the same period last year, according to the report.