Advocate Aurora posts $310M Q3 loss: 5 details

Milwaukee and Downers Grove, Ill.-based Advocate Aurora Health reported a multimillion-dollar net loss but stable credit financial outlook Nov. 15 as the system looks to merge with Charlotte, N.C.-based Atrium Health.

The two health systems announced merger plans to create a 67-hospital system with $27 billion in revenue earlier this year, and the Illinois Health Facilities and Services Review Board unanimously approved the plan to change the ownership for Advocate Aurora's 10 Illinois-based facilities.

Five details:

1. Advocate Aurora reported a $310.8 million loss for the third quarter and reported a $911.6 million loss for the nine months ending Sept. 30. The results are in stark contrast to the $1.5 billion recorded for the nine months ending figure in 2021.

2. Total quarterly revenue reached $3.6 billion, up 3 percent year over year. The health system reported nearly $3 billion of the revenue came from patient services. In July, Fitch affirmed an AA rating and stable outlook for the system's long-term indebtedness, and since then S&P affirmed its AA rating and Moody's affirmed an Aa3 rating as well.

3. Salaries, wages and benefits hit $2.1 billion for the quarter and are at $6.3 billion for the year. Supply, purchased services and other expenses reached $1.2 billion for the third quarter and are at $3.5 billion for the year.

4. Advocate Aurora remains focused on the future with capital expenditures hitting $375.6 million for the quarter. The health system completed its replacement medical campus in Sheboygan, Wis., earlier this year and is expanding the Center for Advanced Care at Advocate Illinois Masonic Medical Center in Chicago, which is expected to be complete in January 2025.

5. The health system's cash reserves have dropped since last year. Advocate Aurora had 276 days cash on hand as of Sept. 30, down from 348 days at the end of last year. The decline is due to increased operating expenses, investment return losses and operational uses.

 

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