As first reported in Becker’s Hospital Review, Baylor Scott and White’s operating income jumped 18.4 percent from last year, but its net income was down 14.9 percent from a year prior according to unaudited financial documents.
The net income loss is a continuation of a trend from earlier this year, when market volatility took a chunk out of Baylor’s net income despite operating income growth. In the 9 months prior to March 31, the North Texas nonprofit system reported an operating income of $584.3 million, up from $493.5 million the year before.
Baylor’s operating revenue grew to $7.4 billion for the same period, up from $7.1 billion last year. But the operating expenses bumped up as well, from $6.6 billion to $6.9 billion.
When other activity such as investments, interest, and one time purchases are considered, Baylor’s net income dropped to $619.1 million from $727.9 million for the nine months prior to March 31 relative to last year.
Salaries, wages, and benefits, which represent around half of the health system’s operating expenses, increased 1.7 percent from the year prior. With the acquisition of First Care Health Plans this year, Baylor’s medical claims increased 58 percent for the same nine month period.
Check out the full financial documents here.