Danville, Pa.-based Geisinger recorded an operating surplus of $109.6 million in the fiscal year ended June 30, down 34.6 percent from an operating surplus of $167.5 million in the year prior, according to recently released bondholder documents.
Geisinger’s revenues climbed 14.3 percent year over year to $6.3 billion in fiscal year 2017. The growth was primarily due to a 13.9 percent increase in patient service revenue and a 15.8 percent increase in premium revenue. Geisinger’s health plan membership climbed 5.8 percent year over year.
The system’s expenses also grew in the most recent fiscal year. Geisinger’s expenses totaled $6.2 billion in the most recent fiscal year, compared to expenses of $5.5 billion in the year prior.
“We view fiscal 2017 as a successful year for Geisinger,” Kevin Brennan, executive vice president and CFO of Geisinger, said in a statement to Becker’s Hospital Review. In addition to the growth in patient and premium revenues, Mr. Brennan said the system completed a successful $587 million bond offering in May and ended fiscal year 2017 with 242 days cash on hand.
“Fiscal 2017’s operating income reduction in comparison to the previous year reflects significant investments in operational improvement planning and the implementation of revenue growth and expense efficiency initiatives,” said Mr. Brennan. “Aside from launching innovative care redesign initiatives intended to ensure Geisinger’s long term success, we also successfully integrated the Geisinger Commonwealth School of Medicine (formerly The Commonwealth Medical College).”
Geisinger ended fiscal year 2017 with a net surplus of $444.5 million, compared to a net surplus of $667.3 million in fiscal year 2016.