Cleveland Clinic details hits to operating margin


http://www.healthcaredive.com/news/cleveland-clinic-details-hits-to-operating-margin/425703/

  • The Cleveland Clinic’s latest financials show the hospital system ended the first half of 2016 with a significantly lower operating margin than at the same time in 2015, landing at 1.2% after the six-month period that ended June 30, 2016 vs. 5.6% in June 2015.
  • Although the system’s revenue went up 17% during this period compared to last year, reaching $3.93 billion, that revenue failed to keep pace with a 23% increase in expenses.
  • The system had anticipated a smaller margin this year, Cleveland Clinic chief financial officer Steve Glasstold Modern Healthcare, partly as a result of increased investments in new care-delivery models and consultants to manage those projects, as well as providing raises to medical and other employees to retain in-demand clinicians.

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