Aurora Health Care Inc. reported a 9 percent decrease in operating income in fiscal 2017, according to its recently released annual financial report.
The health care system posted $5.3 billion in revenue in 2017, a 4 percent increase over 2016. After deducting expenses, it had an operating income of $339 million, down from $373 million the previous year.
Aurora’s expenses increased by 5 percent in 2017, driven largely by increased spending on salaries, wages and benefits, as well as professional fees.
Expenses for salaries, wages and benefits rose 6 percent, from $2.8 billion in 2016 to $2.97 billion in 2017. Expenses for professional fees increased 14 percent, from $82.7 million in 2016 to $94.3 million in 2017.
Charity care costs increased by about 23 percent in 2017, to $58.3 million. Total costs associated with uncompensated care, community benefits provided, and the unpaid cost of Medicare rose 10.5 percent in 2017, to $1.2 billion.
Aurora completed its merger with Advocate Health Care of Downers Grove, Illinois on April 1. Advocate posted $6.2 billion in revenue in 2017, according to its recently released annual financial report.
