Livonia, Michigan-based Trinity Health System reported that its operating income was $136.9 million in fiscal 2018, up from a loss of $18.1 million the prior year even after accounting for charges connected to a planned transition to a new electronic health record system.
As part of its fiscal 2018, Trinity recorded impairment charges of $264.4 million, including $107.8 million tied to Trinity's decision to move to a single electronic health record and revenue cycle management system platform. In May, Trinity announced it would switch its EHR platform from a mix of Cerner and Athenahealth to Epic. The project is expected to begin in fiscal 2019. In comparison, Trinity recorded impairment charges of $248.1 million in fiscal 2017.
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Trinity Health is one of the largest Catholic healthcare systems in the country, with 94 hospitals and 109 post-acute care facilities across 22 states. Last month, it was announced that Trinity would be part of a consortium of more than 100 providers to officially join forces to launch a nonprofit generic drug company called Civica Rx and would be part of the company's initial governance. The health system also announced the formation of Trinity Health Mid-Atlantic, a new Regional Health System combining three of its current regional health facilities with five hospitals across the Philadelphia region.
Trinity reported $18.4 billion in revenue in fiscal 2018, up from $17.6 billion in fiscal 2017. It reported uncompensated care to uninsured and underinsured patients, reported as bad debt at cost, was $173.8 million in fiscal 2018, up from $161.7 million in fiscal 2017.
Public health system companies have begun announcing the timing of their earnings calls for their third-quarter results. HCA will report its third-quarter earnings before market open on Oct. 30. Tenet Healthcare will report its earnings at the close of the day on Nov. 5.
Other public health system companies have not yet released the dates of their earnings calls with analysts.