PROVIDENCE — The Lifespan Corp. nonprofit health system reported $14.6 million of operating income for the fiscal year ending Sept. 30, 2017, in its annual report, $12.4 million more than in 2016. The group that includes four hospitals and several other health care provider entities posted patient service revenue of $1.98 billion, compared with $1.89 billion in fiscal 2016. The provision for bad debt in fiscal 2017 was $68.5 million, itself an increase on $64.1 million in the previous fiscal year.
There were two financial assessments in the report. Lifespan reported $26.9 million of revenue in excess of its expenses, as opposed to a deficiency of $29 million one year prior. In addition the nonprofit showed in increase in net assets over the year of $126.9 million thanks to additional income from investments, gifts, grants, bequests and the like, a significant improvement on the decrease in net assets for fiscal 2016 of $49.1 million.
While the excess of revenue over expenses margin was 1.2 percent, David Levesque, director of public relations at Lifespan, noted the repeated trend placing operations in the black was a positive sign considering national and local health care industry news.
“There is ample evidence demonstrating that fiscal 2017 was another challenging year for the health care sector in Rhode Island and nationally. Despite this reality, Lifespan continues to be financially stable and the preferred health care provider of Rhode Islanders by offering a complete and comprehensive health system.”
Lifespan broke out operating and net income for all its health care provider entities, showing which performed better in the course of the fiscal year.
Rhode Island Hospital
- Operating income: $15.1 million
- Net income: $16.2 million
The Miriam Hospital
- Operating income: $6.3 million
- Net income: $9.9 million
Emma Pendleton Bradley Hospital
- Operating income: $1.3 million
- Net income: $1.6 million
Newport Health Care Corp. (Newport Hospital)
- Operating loss: $9.8 million
- Net loss: $1.9 million
Gateway Healthcare
- Operating loss: $5.2 million
- Net loss: $5.9 million
Lifespan Home Medical
- Operating loss: $368,000
- Net loss: $368,000
Also in the report:
- Charity care for the year was $93.1 million, an increase of $2.6 million
- Cash flow from operations in fiscal 2017 totaled $99.8 million, a 12.9 percent increase
- Long-term debt at the end of the fiscal year stood at $334.9 million, a drop from $363.7 million on Sept. 30, 2016
Rob Borkowski is a PBN staff writer.
