AdventHealth sees $578M loss in Q1

Despite posting income from operations, AdventHealth ended the first quarter of 2020 with a $578.5 million net loss, according to unaudited financial documents

AdventHealth, a 46-hospital system based in Altamonte Springs, Fla., reported an operating income of $35.7 million in the three-month period ended March 31. During the same period last year the health system recorded an operating income of $189.3 million.

In the first quarter, AdventHealth recorded a nonoperating loss of $616 million; it had a nonoperating gain of $304.4 million in the same period a year ago. 

AdventHealth saw its total revenue reach $2.98 billion in this year's first quarter, an increase from $2.91 billion reported in the first quarter of 2019. 

AdventHealth's expenses rose 8 percent year over year to $2.95 billion. 

AdventHealth said that the COVID-19 pandemic decreased patient volume and revenue in the last two weeks of the first quarter, and it expects the volume and revenue drop to continue into the second quarter. 

"We expect consolidated volumes and operating revenue to continue to be negatively impacted until the effects of the pandemic begin to subside and the economy begins to stabilize. Additionally, we anticipate continued volatility in the U.S. and global financial markets that will impact realized and unrealized investment returns," AdventHealth stated. 

The ultimate financial effects of the COVID-19 pandemic will be determined by several factors, including government stimulus efforts, the duration of the pandemic and how long it takes the market to rebound, the health system stated.

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