Wednesday, May 15, 2019
Beaumont Health’s net income increased to $129.1 million in the first quarter of 2019, an increase of $119.1 million over the same period in 2018. The organization saw operating revenues rise to $1.15 billion, a $23.4 million increase over the $1.13 billion reported in the first quarter of 2018.
Net operating income for the first three months of 2019 was $37.6 million (3.3% operating margin), a $16.7 million decrease from 2018’s result of $54.2 million (4.8% operating margin). Non-operating gains for the first quarter were $91.6 million compared to a non-operating loss of $44.2 million in the same period last year.
“We anticipated these changes in operating performance and accounted for them in our 2019 plans. Health care is rapidly evolving and we are focused on positioning ourselves for strong future growth. For example, patients are increasingly seeking care in outpatient settings, which is why we invested in more outpatient centers and urgent cares. In addition, we have invested in our people through planned salary and benefit increases,” Beaumont Health Chief Financial Officer John Kerndl said.
Additionally, the company’s treasury indicators remained strong as cash and investments were $2.1 billion at March 31, 2019 compared to $1.9 billion on March 31, 2018. Unrestricted days cash on hand was 172.9 days at March 31, 2019, as compared to 160.8 days on March 31, 2018. Total debt at March 31, 2019 was $1.57 billion, compared to the March 31, 2018 balance of $1.62 billion.
Beaumont Health
Beaumont Health is Michigan’s largest health care system and is most preferred for health care in Southeast Michigan, according to NRC Health survey data. The not-for-profit organization was created to provide patients with greater access to compassionate, extraordinary care, every day. Beaumont Health has a total net revenue of $4.7 billion and consists of eight hospitals with 3,429 beds, 145 outpatient sites, nearly 5,000 physicians, 38,000 employees and 3,500 volunteers. In 2018, Beaumont Health had about 178,000 inpatient discharges, 18,000 births and 573,000 emergency visits.