Aurora Health Care
has sold its ownership interest in two surgery centers that were joint ventures with Froedtert & the Medical College of Wisconsin, according to the Milwaukee-based health care system’s recent financial filings.
Aurora said it sold its 50 percent ownership interest in the Menomonee Falls Ambulatory Surgery Center for cash consideration of $5 million in the first quarter of 2018. The surgery center, located on the Froedtert & MCW Community Memorial Hospital campus at W180 N8085 Town Hall Road, was established in 2011 as a partnership formed by Froedtert Community Memorial Hospital and Aurora Health Care subsidiary Advanced Healthcare, Inc.
Aurora's interest in the surgery center were acquired by Froedtert & the Medical College of Wisconsin Community Memorial Hospital, Froedtert officials said.
Aurora also sold its 20 percent ownership interest in the Froedtert Surgery Center for cash consideration of $2 million, the system said. Froedtret acquired Aurora's interests in the Froedtert Surgery Center, located on the Sargeant Health Center campus at 840 N. 87th St. in Milwaukee. It was created in 2004 as a joint venture among Froedtert Memorial Lutheran Hospital, Inc., the Medical College of Wisconsin and Aurora Advanced Healthcare to provide ambulatory surgery services.
Aurora’s carrying value in the surgery centers totaled $5.8 million as of the end of 2017, according to its financial filings.
Aurora also reported a 5 percent decrease in operating income in the first quarter of 2018, compared to the same period last year. The system reported a 9 percent increase in revenue in the first quarter of 2018, compared to that period in 2017, but it was offset by a 10 percent increase in its total expenses. The increase in expenses was driven largely by increased expenses related to salaries, wages and benefits, and supplies.
Aurora posted operating income of $89.9 million in the first quarter, down from $94.2 million during the same period in 2017.
Aurora completed its merger with Advocate Health Care of Downers Grove, Illinois on April 1. The two systems reported combined total revenues of $2.94 billion in the first quarter of 2018. The systems’ combined operating income was $113.5 million in the first quarter.