University of Kansas Health System sees operating income drop 46% in FY 2017

Kansas City-based University of Kansas Health System reported operating income of $73 million in fiscal year 2017, a 46.2 percent year-over-year decrease from $135.8 million.

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UK Health System’s operating revenue increased from $1.7 billion in fiscal year 2016 to $2.1 billion in fiscal year 2017, partially reflecting increased income from its Jan. 1 acquisition of Hays (Kan.) Medical Center.

At the same time, the health system saw fiscal year 2017 operating expenses increase 29.1 percent year over year to $2.1 billion. UK Health System partly attributed rising expenses to its addition of HaysMed.

UK Health System ended fiscal year 2017 with $99.8 million in net income, dropping from $127.2 million achieved in fiscal year 2016. The health system saw its operating margin more than halved in fiscal year 2017 to 3.4 percent, compared to 7.8 percent recorded in fiscal year 2016.

Becker’s Hospital Review reached out to UK Health System for further information on its financial report. This article will be updated once information becomes available.  

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