The seven-hospital system saw its revenue grow year over year to $908.1 million in the fiscal year ended June 30, up from $827 million reported in 2016, according to recent financial filings. A Wellmont spokesperson told Becker’s Hospital Review the system’s acquisition of Takoma Regional Hospital Jan. 1 was a primary contributor to year-over-year revenue growth.
The Wellmont spokesperson added: “One of the major areas where Wellmont has performed significant work is with the classification by insurance companies of many patients who stay in the hospital for a short time as observation rather than inpatient. Wellmont devoted considerable attention toward appropriately classifying the patient’s status, which has increased our health system’s bottom line. As an example of our efforts, inpatients increased by 13.5 percent and observation patients decreased by 28.4 percent in fiscal 2017 versus fiscal 2016.”
At the same time, Wellmont saw expenses rise to $894.6 million in 2017, up from $814.3 million in 2016. The system attributed the increase to its Takoma Regional acquisition, as well as supplies cost.
Wellmont ended 2017 with net income of $44.1 million, more than double its net income of $17.2 million reported last year. The system attributed the increase to $19 million in investment gains.
In addition to its Takoma Regional acquisition, Wellmont is seeking a merger with Johnson City, Tenn.-based Mountain States Health Alliance.
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