The financial update comes less than two weeks after talks of a major merger with Memorial Hermann fell apart for reasons that remain unclear.
Dallas-based Baylor Scott & White Health took a financial hit in the six months ended December 31, 2018, despite boosting its operating margin slightly.
The nonprofit health system reported $267.7 million in net income for the first half of fiscal year 2019, a 55% drop from the $595.5 million it reported for the first half of fiscal year 2018, according to unaudited financial statements published Thursday.
Contributing to that decline were $186.8 million in unrestricted unrealized losses on investments. By contrast, the system had recorded $111.8 million in gains on investments during the same period a year prior.
Overall, the system reported operating revenue of $4.9 billion in the first half of fiscal year 2019, up 2% from the $4.8 billion it reported a year prior. Operating expenses, meanwhile, were $4.5 billion, up 1.4% from the $4.4 billion it reported a year prior.
Baylor Scott & White Health's reported operating margin rose slightly to 8.5% in the first half of fiscal year 2019, from 8% in the first half of fiscal year 2018.
This news comes less than two weeks after Baylor Scott & White Health and Houston-based Memorial Hermann Health System called off plans to merge, without offering much detail as to why their talks fell apart.
Related: Memorial Hermann, Baylor Scott & White Call Off Merger Talks
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.