Trinity Health Operating Income Jumps 62% in First Half of FY18
February 22, 2018UNAUDITED QUARTERLY REPORT
Summary Highlights for the first half of FY18 ending December 31, 2017
During the first six months of fiscal year 2018, Trinity Health reported a $68 million increase in operating income to $177.9 million from $109.9 million in the prior year. Its fiscal 2018 operating margin of 2.0%, and its operating cash flow margin of 7.9% are significantly improved compared to the prior year's operating margin of 1.3% and operating cash flow margin of 7.4%.
Revenue growth coupled with cost controls, improvements in length of stay and productivity, as well as improved performance in Trinity Health's owned managed care plans, helped to increase margins.
Revenue increased $314 million to $9.0 billion, a 3.6% increase over the prior year. The increase is the result of growth in patient volumes, payment rates and case mix, as well as health plan premium revenue. Volume increased over the prior year in 14 of Trinity Health's 20 regional health ministries as measured by case mix adjusted equivalent discharges.
Expenses increased $246 million, or 2.9%, to $8.8 billion. Trinity Health continues to undertake targeted efficiency initiatives to improve performance and address unfavorable industry trends. These initiatives focus primarily on labor, productivity and supply costs, and clinical and administrative operations.
Highlights of results for the six months ended December 31, 2017, include:
- Total assets of $25.7 billion
- Total net assets of $12.9 billion
- Total unrestricted revenue of $9.0 billion, a 3.6% increase over fiscal 2017
- Operating income of $177.9 million
- Excess of revenue over expense of $806.4 million with a net margin of 8.3%
- Unrestricted cash and investments of $8.8 billion
- Days cash on hand of 193 days