10 health systems reporting net profits in 2022

Health systems across the country reported significant losses in 2022 due to inflation and the rising costs of supplies, equipment and labor, but some systems saw investment returns and enhanced revenues offset expenses for the year.

Here are 10 health systems that reported net profits in 2022:

1. Nashville, Tenn.-based HCA Healthcare reported a $5.64 billion profit in 2022, down from $6.96 billion in net income in 2021. The 182-hospital system had a net income of $2.08 billion in the fourth quarter, up from $1.81 billion over the same period last year. HCA expects revenue between $61.5 billion and $63.5 billion in 2023 and a net income between $4.53 billion and $4.9 billion.

2. King of Prussia, Pa.-based Universal Health Services reported a profit of $675.6 million in 2022, a 31.9 percent drop from $991.6 million the prior year. Net revenues increased 6 percent to $13.4 billion in 2022, compared with $12.6 billion in 2021. UHS saw expenses increase from $11.3 billion in 2021 to $12.4 billion last year. The company reported higher expenses across all categories, including salaries, wages and benefits. For the fourth quarter, net income hit $174.8 million, down from $239.1 million during the same period in 2021. 

3. Rochester, Minn.-based Mayo Clinic reported $595 million in net operating income in 2022 on revenues of $16.29 billion, a 3.7 percent operating margin. This was compared to a $1.2 billion gain in 2021. Total revenues increased 3.6 percent year over year to $16.3 billion while total expenses increased 8.1 percent to $15.7 billion.

4. Dallas-based Tenet Health reported a profit of $410 million for 2022, down from $915 million in 2021. In its hospital sector, Tenet reported net operating revenue of $15 billion for the year. Revenue for its ambulatory business, United Surgical Partners International, totaled $3.2 billion for the year. Tenet is predicting net operating revenues of between $19.7 billion and $20.1 billion for full year 2023. That compares with 2022 revenues of $19.2 billion.

5. Orlando (Fla.) Health reported a profit of $264.8 million for the quarter ending Dec. 31 as investment income outperformed the same period in 2021. The system's operating income for the period was $78.6 million on the back of improved revenue totaling $1.37 billion. Higher expenses in 2022 reined in the operating gain which compared with $88.8 million in 2021 for the same quarter.

6. Franklin, Tenn.-based Community Health Systems, reported $179 million in net income in 2022, a 51.4 percent drop from the $368 million net income reported the prior year. The drop was driven by a decline in net operating revenues, fewer inpatient admissions and what CHS termed "unfavorable changes" in payer mix. Total operating costs and expenses for the year ended Dec. 31 were $11.4 billion, up from $11 billion in 2021. Net operating revenues were $12.2 billion in 2022, down slightly from $12.4 billion the prior year. 

7. Cincinnati Children's Hospital Medical Center reported net income of about $125 million for the six months ended Dec. 31.While expenses rose 7.5 percent from the same period in 2021 to total $1.45 billion, improved operating revenue and positive returns on investments boosted income. The $125 million figure compared with net income of $162.6 million in 2021.

8. Philadelphia-based Penn Medicine reported $118 million in net income for the six months ending Dec. 31 as revenues increased to almost $5 billion. The figures compare with net income of $280 million in the same period in 2021. Operating income for 2022 totaled $103.6 million versus $152.5 million in 2021.

9. Jacksonville Fla.-based Baptist Health posted $110.3 million in net income in its most recent quarter as investment values received a boost and offset increased expenses. The six-hospital system saw expenses rise 11 percent to total $537.5 million in the three months ending Dec. 31. Non-operating gains, including investments, totaled $92.3 million, a 76 percent jump on 2021 levels.

10. Durham, N.C.-based Duke University Health reported net income of $28.8 million in the second half of 2022 amid a robust investment performance. That figure compared with a $140.2 million gain in the same period in 2021. The system reported an operating loss for the period of almost $70 million as expenses increased 10.5 percent over 2021.

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