Aurora Health Care’s finances held steady in 2017

KeepHealthCare.ORG – Aurora Health Care’s finances held steady in 2017

Aurora Health Care’s finances held steady in 2017 as the Milwaukee-based system forges ahead with its newly-approved union with Advocate Health Care.

Aurora operating income fell slightly in 2017 to $339 million, compared with $373 million in 2016. Total revenue during that time was $5.3 billion in 2017, up from $5.1 million in 2016.

The 15-hospital health system recorded a slight increase in profit year-over-year, from $470 million in 2016 to $474 million last year.

On the expense side, professional fees increased 14% in 2017. During the same time, salaries, wages and fringe benefits increased by about 6%. Aurora’s net patient service revenue increased by about 4%.

Aurora’s charity care costs increased by nearly 23% in 2017, to $58.3 million. Meanwhile, its shortfall associated with providing services to Medicaid patients fell slightly during the same time period. Aurora’s uncompensated cost of treating Medicare patients increased about 2.7% year-over-year.

Aurora has 14 acute-care hospital campuses, one psychiatric hospital, a network of about 158 physician clinics, home health services and about 67 retail pharmacies, among other operations.

Last week, Aurora and Downers Grove, Ill.-based Advocate announced that the Federal Trade Commission and the chair of the Illinois Health Facilities & Services Review Board had signed off on their proposed deal in February, making their merger official. The resulting organization will have 27 hospitals in Wisconsin and Illinois and $10.7 billion in combined revenue.

The health system recorded $9 million in impairment charges last year stemming from construction on an abandoned project, investment in an unconsolidated entity and a retail pharmacy prescription list intangible. The system did not record impairment charges in 2016.

Tara Bannow covers hospital finance for Modern Healthcare in Chicago. She previously covered all aspects of healthcare for the Bulletin, a daily newspaper in Bend, Ore. Prior to that, she covered higher education for the Iowa City Press-Citizen. She earned a bachelor’s degree in journalism in 2010 from the University of Minnesota.

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Source: http://www.modernhealthcare.com/article/20180329/NEWS/180329888/aurora-health-cares-finances-held-steady-in-2017

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