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Scripps Health sees higher costs clip operating margin
Modern Healthcare

Scripps Health, a four-hospital, San Diego-based system, felt the pinch from higher expenses in fiscal 2015.Cost increases for salaries and benefits, and supplies and services rose faster than the growth it saw in net patient-service revenue, capitation premiums and provider-fee revenue.

Scripps’ compensation costs increased 4.2% while supplies spiked 8.8% and services were up 11.7%.Yet there were bright spots in the earnings report.Like other California hospitals, Scripps benefited from the return of the state’s provider-fee program, which was on hold last year awaiting CMS approval for its extension. The program supplements Medi-Cal payments.