CARTI Sees Revenue Jump to $300M

CARTI Sees Revenue Jump to $300M
A rendering of the CARTI Surgery Center set to open next year. (Cromwell Architects Engineers)

As CARTI prepares to open its $28.7 million surgery center in Little Rock in the spring, the nonprofit cancer treatment network continues to post record revenue. 

For its fiscal year that ended June 30, CARTI had $299.77 million in net patient service revenue, up 11.6% from the previous year. 

And for the fiscal year that ends midyear 2023, CARTI projects to have $340 million in patient revenue, said Adam Head, CARTI’s president and CEO. 

The number of CARTI’s new patients increased 17% in the most recent fiscal year, and that trend is expected to continue through this fiscal year.

CARTI has been growing in recent years, and now has 18 locations, including six community cancer centers. The latest to open include the CARTI Cancer Center in El Dorado, whose first phase opened in late 2021, and the CARTI Cancer Center in Pine Bluff, which opened in February. 

The Pine Bluff center is 30,000 SF and sits on 10 acres, making it one of CARTI’s largest community cancer centers, Head said. “If you were to walk through there, you’ll find the same leading-edge technology that you can get in Little Rock,” he said. It has about six physicians and 35 employees. 

“And it’s a hub for all of southeast Arkansas,” Head said. 

For about the last two years, while the Pine Bluff building was under construction, CARTI operated a clinic at the location. 

CARTI’s growth will continue next year. It expects to open its CARTI Surgery Center in Little Rock in the spring. The 57,000-SF center, being built by Kinco Constructors of Little Rock, has a $28.7 million valuation, landing it No. 23 on the list of the largest projects under construction in Arkansas. Cromwell Architects Engineers of Little Rock designed the building. 

“Our focus is cancer and those specialties that touch cancer,” Head said. “And that is our main focus since our inception 46 years ago, and that’s obviously continued to expand and evolve.”

CARTI’s surgery center is the first cancer-focused surgery center in the state and will feature six operating rooms, Head said. The building will be adjacent to CARTI’s flagship cancer center in Little Rock. “It’s going to be the largest surgery center that is available right now in Arkansas,” he said.

Head said that CARTI responded to patients who had asked for years whether surgery could be done on CARTI’s campus instead of at outpatient centers or hospitals. “We’re excited about this. We’re going to have this cancer-focused surgery center right in the middle of the state on our main campus,” Head said. “And then there’ll be the ability for patients to receive the rest of their treatment close to home after they have surgery, which is really cool.”

Rising Expenses

CARTI, like other health care organizations, has had to deal with rising costs stemming from COVID-19, such as higher labor costs, supplies and medication. 

CARTI’s operating expenses in the fiscal year totaled $305 million, up from $273 million in the previous year. “We’re in the same situation that most are in health care,” Head said. “It’s just difficult in general.”

Its excess of revenues over expenses for the fiscal year was $599,622. The previous year, it was $4.35 million, according to CARTI’s financial statement.

The margins CARTI has had in the last several years, however, have been used for the new centers and services “and being able to offer something more for patients in Arkansas, and beyond, than ever before,” Head said.