AdventHealth, a 46-hospital system based in Altamonte Springs, Fla., recorded higher revenue in the third quarter of 2021, but ended the period with lower operating income, according to recently released financial documents.
In the three months ending Sept. 30, the health system saw its revenue reach $3.7 billion, up 14.5 percent from the same period in 2020. The boost largely was driven by an increase in net patient service revenue.
Despite the increase in revenue, AdventHealth recorded lower operating income in the third quarter of this year compared to the same quarter last year. In particular, AdventHealth posted operating income of $224.4 million, down from the $281.1 million recorded in the same quarter last year.
The decrease in operating income was attributed to an increase in expenses, which grew from nearly $3 billion in the third quarter of 2020 to $3.5 billion in the third quarter of 2021.
AdventHealth said expenses increased because contract labor costs are still at elevated levels, supply costs are up and it saw higher-acuity patients.
After factoring in nonoperating items, the health system ended the third quarter of 2021 with net income of $273.3 million. In the same period last year, AdventHealth posted net income of $478.2 million.