Beckers Hospital Review: Essentia Health's Operating Margin Dips Below 1% as Costs Mount
Duluth, Minn.-based Essentia Health's operating performance was negatively affected by multimillion-dollar expansion projects in fiscal year 2018, according to financial documents.
Essentia saw net patient revenue grow almost 4 percent year over year to $2 billion in fiscal 2018. However, cost outpaced revenue growth, as total operating expenses climbed to $2.1 billion in fiscal 2018. As a result, Essentia's operating margin fell from 1.7 percent in fiscal 2017 to half a percent in 2018.