Newly combined Advocate Health sees net gains in first post-merger report

Advocate Health’s first full quarter was a profitable one, as the newly combined system achieved a positive, albeit razor-thin, operating margin at 0.1%.

Charlotte, North Carolina-based Advocate, a 67-hospital nonprofit system formed when Advocate Aurora Health and Atrium Health merged in December, reported net income of $578.74 million in the first quarter, boosted by $610.43 million in net investment income. Operating income came to $10.42 million.

The Tuesday earnings report included results from Advocate Aurora, Atrium Health Wake Forest Baptist and Atrium’s Charlotte-Mecklenburg Hospital Authority.

Individually, Advocate Aurora operations reported a 2.5% margin, while Atrium posted a 0.5% margin.

Quarterly revenue for the combined system totaled $7.54 billion, while expenses were slightly under that at $7.53 billion, including $4.42 billion in costs for salaries and wages.

Advocate’s first-quarter results fall in line with many of its fellow nonprofit systems, which generally saw improvement in operating margins and patient volumes, despite the ongoing challenges of labor costs and inflated prices on supplies. Advocate reported a combined 170,109 inpatient cases, 108,045 total surgeries and 532,167 emergency room visits in the first quarter.