Wake Forest Baptist sees operating income sink 54% in Q2

Winston-Salem, N.C.-based Wake Forest Baptist Health saw revenues increase in the second quarter of fiscal year 2019, but the system ended the period with lower operating income than in the same period a year earlier, according to unaudited financial documents released Feb. 11.

Wake Forest Baptist, a tertiary and quaternary acute care regional referral center with four additional hospital facilities, reported revenues of $1.64 billion in the second quarter of fiscal 2019, up 16.7 percent from the same period of the year prior.

The revenue boost was largely attributable to a 17.8 percent year-over-year increase in patient service revenue due to a rise in clinical volume and outpatient services. Wake Forest Baptist saw patient volume rise after acquiring High Point (N.C.) Medical Center from Chapel Hill, N.C.-based UNC Health Care in September.

However, rising expenses offset revenue gains. The system said expenses climbed 18.5 percent year over year to $1.63 billion in the second quarter of fiscal year 2019.

Wake Forest Baptist ended the second quarter of fiscal year 2019 with operating income of $15.6 million, down 54 percent from $33.8 million in the same quarter of fiscal 2018.

After factoring in a loss on investments and other nonoperating items, the system posted a net loss of $65.1 million in the second quarter of fiscal 2019. That's compared to the second quarter of fiscal 2018, when Wake Forest Baptist reported net income of $118.9 million.

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