Trinity Health excess of revenue over expenses reaches $1.3 billion to close out FY17

Summary Highlights for the Year-Ended June 30, 2017

Trinity Health reported a $1.2 billion increase in excess of revenue over expenses in Fiscal Year 2017 which includes the results of strong investment returns and is also due, in part, to revenue growth and operational improvements focused primarily on strengthening clinical and operational efficiencies and addressing labor and supply costs. :

The year was marked by growth of $115 million in year-over-year operating income before other items. Trinity Health reported operating income before other items of $266 million and operating margin and operating cash flow margin before other items of 1.5% and 7.6%, respectively. This is significantly improved over fiscal year 2016, which resulted in operating income before other items of $151 million and operating margin and operating cash flow margin before other items of 0.9% and 7.2%, respectively. :

Other items incurred during the year resulted in a net charge to operations of $284 million including $248 million of non-cash fixed asset impairment charges that are helping the system right-size inpatient physical plant utilization and reposition in some markets, and $36 million of restructuring charges primarily related to severance and benefits under cost reduction and staffing initiatives currently positioning Trinity Health for lower labor costs in FY2018. :

For the year ended June 30, 2017, Trinity Health increased revenue by $1.3 billion to $17.6 billion, a 7.9% increase over the prior year. Excluding the effect of acquisitions, these increases are attributed to volume growth, improvements in revenue realization and service mix, and increases in population health risk-share gains.:

Trinity Health reported non-operating income of $1.4 billion for fiscal year 2017, a $1.3 billion improvement over fiscal year 2016, driven by strong investment earnings. Net margin rose to 7.3% over prior year net margin of 0.3%. Highlights of results for the fiscal year ended June 30, 2017, include:

Total assets of $24.7 billion and net assets of $12.0 billion

• Total unrestricted revenue of $17.6 billion, a 7.9% increase over fiscal year 2016 with a 4.5% increase prior to the impact of acquisitions
• Operating income before other items of $266 million, a $115 million increase over fiscal year 2016
• Non-operating income of $1.4 billion, a $1.3 billion improvement over fiscal year 2016 with net margin of 7.3%
• Unrestricted cash and investments of $8.4 billion
• Days cash on hand of 186 days