Becker's Hospital Review

18 CFO / FINANCE Providence St. Joseph Health turns around $255M operating loss in 2017 By Morgan Haefner R enton, Wash.-based Providence St. Joseph Health posted operating in- come of $3 million in fiscal year 2017, improving a $255 million operating loss the 50-hospital system reported in fiscal year 2016. e change comes aer the nonprofit hospital system implemented a cost-cutting plan involv- ing layoffs, with 210 jobs cut in August 2017. For the year ended Dec. 31, 2017, the health system reported operating revenue of $23 bil- lion, up 5 percent from the previous year, ac- cording to financial documents. Providence St. Joseph attributed the gains to greater pa- tient volumes. At the same time, the health system's oper- ating expenses also grew to $23 billion, up 3 percent from the prior year, due to increased patient volumes, salary and wages, and sup- ply costs. Aer accounting for nonoperating gains, Providence St. Joseph ended 2017 with net in- come of $780 million, down 85 percent from $5.2 billion reported in 2016. e prior year included a $5.2 billion nonoperating gain associated with Providence's 2016 affiliation with Irvine, Calif.-based St. Joseph Health. n Woman receives $12k bill after 2-hour ER visit for bee sting By Ayla Ellison A woman in Florida received a $12,000 bill after she went to a hospital emergency department for a bee sting in 2015, according to CNN Money. After being stung by a bee in her yard in Valrico, Fla., Sylvia Rosas decided to go to the ED because she had experienced allergic reactions in the past, according to the report. While at the hospital, she was seen by nu- merous physicians, who ordered an EKG and thousands of dollars in blood tests. Her hospital visit lasted less than two hours. Because the hospital was not in Ms. Ro- sas' insurance network, she was responsi- ble for the entire $12,000 bill, according to the report. "Never did I think I'd have this type of a bill," Ms. Rosas told CNN Money. "I was there for such a short time." Ms. Rosas' experience highlights a na- tional trend. Spending on ED visits rose 31 percent between 2012 and 2016, according to CNN Money, which cited a study by the Health Care Cost Institute. n Banner Health sees annual net income more than double By Ayla Ellison B anner Health, a 28-hospital, nonprofit system based in Phoenix, saw its financial picture significantly improve in 2017, according to bond- holder documents. Banner reported revenues of $7.8 billion in 2017, up 2.6 percent from reve- nues of $7.6 billion in 2016. The system saw net patient service revenue and premium revenue rise in 2017. Higher expenses offset some of Banner's revenue gains last year. The sys- tem said expenses grew 1.2 percent year over year to $7.6 billion in 2017. Banner ended 2017 with operating income of $268.9 million, up 71.2 per- cent from operating income of $157 million in the year prior. After factoring in improved investment returns, Banner reported net income of $709 million, up from $268.8 million in 2016. n BayCare sees net income rise 31% in 2017 By Kelly Gooch C learwater, Fla.-based BayCare Health System saw operating revenue and net income climb in 2017 compared to the year prior, according to bondholder documents. BayCare reported operating revenue of $3.9 billion in 2017, a 6.9 percent increase year over year. e growth is partially attributed to a rise in net patient service revenue. While operating revenue increased, the system also saw higher operating expenses last year. BayCare said operating expenses rose from $3.4 billion in 2016 to $3.6 bil- lion in 2017. e system ended 2017 with operating income of $342.7 million, up 7.5 percent from $318.8 million in 2016. Aer factoring a rise in investment income, BayCare reported net income of $803.4 million in 2017, up from $611.9 million the year prior. n

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