On the heels of a canceled merger with Memorial Hermann in the Houston area, Baylor Scott and White saw it’s income drop to $267.7 million in the first half of the 2019 fiscal year compared to $595.5 million at the same time last year according to unaudited financial documents.
Much of the losses have been due to market volatility, with the stock market causing similar if not greater losses in other health systems around the country. Kaiser Permanente in California saw a 71 percent loss in income compared to last year due to shaky markets as well. Baylor hasn’t provided any further comment or explanation about the canceled merger, so it isn’t known if this revenue drops were a part of the decision.
Operating revenue actually grew in the first half of 2019, ticking up to $4.9 billion compared to $4.8 billion last year. Higher patient revenues came from outpatient contacts, clinic visits, and overall encounters with patients. Operating income also jumped up over eight percent to $415.8 billion in the first half of the fiscal year.
While operating revenue went up, so did expenses, which were $4.5 billion compared to $4.4 billion last year. These expenses included employee salaries, wages, and benefits. Other losses came from Baylor’s investments, where they lost $186.8 million compared to a $111.8 million gain for the same period last year.
Overall, the revenue and gains in excess of expenses and losses dropped 55 percent in the first half of 2019 at $267.7 million. Last year the health system made $595.5 million for the same period.