Aurora Health Care operating income fell slightly in 2017

Revenue was up 4%


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.

The two systems have said their combined resources will offer the financial flexibility to expand investment and scale innovation.

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