Advocate Aurora's loss grows to $435M over 9 months

Advocate Aurora Health saw revenue and operating income increase year over year in the third quarter of this year, but the system ended the first nine months of 2020 with a loss, according to financial documents released Nov. 23. 

Advocate Aurora, which has dual headquarters in Downers Grove, Ill., and Milwaukee, reported revenue of $3.5 billion in the third quarter of 2020, up from $3.2 billion in the same period a year earlier. 

Looking at the first nine months of this year, the health system's revenue was up less than 1 percent year over year. Patient service revenue decreased 6.9 percent year over year. The decline was attributed to a decrease in hospital outpatient visits and physician clinic visits due to the COVID-19 pandemic. 

To help offset lost revenue and expenses tied to the pandemic, Advocate Aurora received $596 million in grants in the first nine months of this year made available through the Coronavirus Aid, Relief and Economic Security Act. 

Advocate Aurora posted operating income of $275.8 million in the third quarter of this year, compared to operating income of $81.2 million in the same period a year earlier. After factoring in nonoperating items, the system ended the third quarter with net income of $479.5 million, compared to $49.1 million a year earlier. 

Looking at the first nine months of this year, Advocate Aurora reported an operating loss of $26.9 million and a net loss of $434.9 million. In the same period of 2019, the system posted operating income of $326.4 million and net income of $1.1 billion. 

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