Atrium Health’s Charlotte and Georgia operations reported a $426 million operating profit during the first half of the year, more than double what it had budgeted for the period.
Coupled with investment income of $427 million during the six months, Atrium said its net income totaled $833 million, a 35% increase from the same period last year. (The net income included a special $20 million nonoperating loss.) Like other investors, Atrium is benefiting as stock market indices reach record levels.
As for its operations, Atrium said strong volume in key service areas and recognition of COVID-related grants were key factors in the robust performance, offsetting higher labor and pharmaceutical costs. In a report to Atrium’s board this week, the enterprise cited “strong activity” in its oncology and specialty pharmacy business.
The not-for-profit organization said its operating margin was 6.2% during the first half. That compares with a median 1.1% average for not-for-profit U.S. hospitals, according to Fitch Ratings. Many hospital systems say they are facing increasing financial pressures.
Atrium’s results also continue last year’s record performance. Revenue increased 15% in 2024 to $12.59 billion, while net income gained 19% to $1.41 billion.
Atrium’s revenue mostly comes from the Charlotte area, but includes the organization’s Georgia operations. The Atrium Health business makes up more than a third of parent organization Advocate Health, which had about $34.8 billion in revenue last year. That includes its operations in the Chicago and Milwaukee metro areas, plus Winston-Salem-based Atrium Wake Forest Baptist Health.
Advocate is the third-largest U.S. not-for-profit hospital operator, while Atrium Health is North Carolina’s biggest healthcare system. Advocate reported net income of nearly $2.9 billion in 2024 and $2.2 billion in 2023.
HCA Healthcare, the largest U.S. hospital operator, is roughly double Advocate’s size, with $70.6 billion in revenue last year. HCA, which is a for-profit public company, reported net income of $5.7 billion in 2024.
Atrium said it spent $485 million on capital projects during the first half of the year, part of a $1.07 billion budget for the full year. The system is spending several hundred million dollars on a new tower at its flagship campus in Charlotte’s Dilworth neighborhood, while it has also invested heavily in the newly opened Pearl Innovation District in the center city.
At the board meeting, Atrium officials celebrated the launch of Wake Forest University’s medical school campus at the Pearl; a partnership with the IRCAD research organization and medical equipment giant Medtronic; and the opening of the 36-bed Atrium Health Lake Norman hospital in Cornelius in north Mecklenburg County.
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