Thursday, August 15, 2019
Beaumont Health’s net income increased to $209 million through the second quarter of 2019, an increase of $206.4 million over the same period in 2018. The organization saw operating revenues rise to $2.32 billion, a $65.5 million increase over the $2.26 billion reported in the second quarter of 2018.
Net operating income for the first six months of 2019 was $66.2 million (2.9% operating margin), a $34.1 million increase from 2018’s result of $32.1 million (1.4 % operating margin).
“Our net operating income was unusually low during the same time last year because of one-time charges. Excluding one-time charges incurred in 2018, net operating income through June 2019 was $38.5 million behind last year. This is why we are implementing plans to improve our operating performance,” Beaumont Health Chief Financial Officer John Kerndl said.
Non-operating gains for the second quarter were $142.7 million compared to a non-operating loss of $29.6 million in the same period last year.
“Our non-operating gains were driven by strong investments, but market volatility in the remaining months of the year could affect future results. This is a challenging time for health care as we face reduced or flat reimbursement rates and increasing prices for drugs, supplies and services,” Kerndl added. “However, we continue to invest in our people through planned salary and benefit increases and remain focused on positioning ourselves for strong future growth by investing in outpatient and urgent care centers. We have also signed a Letter of Intent with Akron, Ohio-based Summa Health that will allow Beaumont to serve patients beyond the borders of Michigan.”
Additionally, the company’s treasury indicators remained strong as cash and investments were $2.1 billion at June 30, 2019 compared to $2 billion on June 30, 2018. Unrestricted days cash on hand was 182.4 days at June 30, 2019, as compared to 168.8 days on June 30, 2018. Total debt at June 30, 2019 was $1.56 billion, compared to the June 30, 2018 balance of $1.61 billion.