Marietta, Ga.-based WellStar Health System more than doubled its net income in the second quarter of fiscal year 2018 as the system held down costs and brought in greater revenue.
Here are four things to know about the nonprofit hospital's most recent quarter, according to recent financial documents.
1. For the three months ended Dec. 31, WellStar recorded $824.8 million in revenue, up 7.8 percent from $764.9 million recorded in the same period a year prior. WellStar Executive Vice President and CFO Jim Budzinski told Becker's Hospital Review the increases reflected an uptick in inpatient and outpatient admissions, as well as 10 percent growth in its WellStar Medical Group. The opening of Smyrna, Ga.-based WellStar Vinings Health Park in September 2017 contributed to the system's growing outpatient activity.
2. The 11-hospital system kept expenses in check during the second quarter of fiscal year 2018. WellStar saw expenses increase 4.9 percent year over year to $768.6 million as salary and benefit and supplies costs grew.
3. WellStar improved its operating income in the second quarter compared to the same period a year prior. The system saw operating income grow 75.9 percent to $56.2 million, up from $32 million during the second quarter a year prior. WellStar pointed to patient volume increases and its continued integration of five hospitals bought from Dallas-based Tenet Healthcare in March 2016 as reasons for the improvement.
4. WellStar ended the second quarter of fiscal year 2018 by more than doubling its net income to $86.6 million, compared to $39.1 million reported in the same quarter a year before. The improved financial results reflect the results listed above, as well as favorable investment returns associated with WellStar's cash reserves, Mr. Budzinski said.
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