2008 Results Include Strong Credit Rating
San Francisco, CA - October 10, 2008 - Catholic Healthcare West (CHW), the eighth largest health system in the nation and the largest not-for-profit hospital provider in California, today announced the results of its 2008 fiscal year, posting a net income of $170 million for the year ended June 30, compared to $891 million in the 2007 fiscal year, which included the effect of a change in accounting for unrealized gains and losses. This change in reporting rules for unrealized gains and losses on investments resulted in additional investment income of $194 million in FY07 that related to prior years.
Operating income for the not-for-profit hospital system in FY08 was $160 million compared to an operating income of $300 million in FY07. Revenues for FY08 increased 12 percent to $8.4 billion, compared to $7.8 billion in FY07. Across the 41-hospital system, adjusted admissions increased by 5.4 percent during the fiscal year, bringing its three-year increase to 12 percent. Results were released following a standard audit of financial statements.
CHW's income statement was impacted during the year by a non-recurring item - a mold remediation project at St. John's Regional Medical Center in Oxnard, Calif. - and several non-cash accounting entries, including the cost of restructuring debt and the aforementioned change in reporting rules for unrealized gains and losses on investments. Without these events, net income for the 2008 fiscal year would have been $485 million.
Lloyd H. Dean, CHW's president and chief executive officer, said CHW will continue to focus on the core of its healing ministry: delivering quality, compassionate patient care and improving the health and wellbeing of the communities it serves.