ProHealth Care’s operating income up in first half of fiscal 2018

Increase in charges, utilization and busy flu season boost revenues

ProHealth Care’s operating income was up 6 percent in the first half of fiscal 2018, according to a recent report to bondholders.

Waukesha Memorial Hospital

The Waukesha-based health system reported $401.5 million in revenue for first half of the fiscal year, up from $380 million the prior year. Net patient service revenue grew 3.5 percent over the prior year, driven by an increase in gross charges, higher hospital outpatient utilization and a busy flu season in the second quarter, the system said.

After deducting expenses, ProHealth Care had an operating income of $19.8 million in the first half of fiscal 2018, compared to $18.6 million the prior year.

The health care system’s expenses increased by $20.1 million, or 5.6 percent, from the prior year, largely driven by increases in expenses for salaries and wages and medical supplies and drugs.

Expenses for salaries and wages increased by $9.8 million in the first six months of fiscal 2018 from the prior year. Medical supply and drug costs increased $6.3 million from the prior year, driven by inflation and mix of services.

ProHealth said chemo drug costs were the primary driver of increased utilization, thanks to increased volumes at the UW Cancer Center at ProHealth Care in Pewaukee and increased cost of new market pharmaceuticals.

ProHealth Care’s operating income was up 6 percent in the first half of fiscal 2018, according to a recent report to bondholders.

Waukesha Memorial Hospital

The Waukesha-based health system reported $401.5 million in revenue for first half of the fiscal year, up from $380 million the prior year. Net patient service revenue grew 3.5 percent over the prior year, driven by an increase in gross charges, higher hospital outpatient utilization and a busy flu season in the second quarter, the system said.

After deducting expenses, ProHealth Care had an operating income of $19.8 million in the first half of fiscal 2018, compared to $18.6 million the prior year.

The health care system’s expenses increased by $20.1 million, or 5.6 percent, from the prior year, largely driven by increases in expenses for salaries and wages and medical supplies and drugs.

Expenses for salaries and wages increased by $9.8 million in the first six months of fiscal 2018 from the prior year. Medical supply and drug costs increased $6.3 million from the prior year, driven by inflation and mix of services.

ProHealth said chemo drug costs were the primary driver of increased utilization, thanks to increased volumes at the UW Cancer Center at ProHealth Care in Pewaukee and increased cost of new market pharmaceuticals.

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