Advocate Aurora's operating income narrows in Q3

Alia Paavola -

Despite posting higher revenue in the third quarter of 2021, Advocate Aurora Health saw its operating income shrink when compared to the same quarter last year, according to recently released financial documents.

The health system, which has dual headquarters in Milwaukee and Downers Grove, Ill., recorded revenue of $3.6 billion in the third quarter of 2021. In the same period last year, Advocate Aurora had revenue of $3.5 billion. 

Advocate Aurora Health, which has 24 acute care hospitals, also saw its expenses rise in the quarter ended Sept. 30 to $3.4 billion, up 6.3 percent compared to the same quarter last year. 

After factoring in nonrecurring expenses of $10.8 million, Advocate Aurora ended the third quarter of this year with an operating income of $184.2 million. In the same period last year, Advocate Aurora's operating income was $275.8 million. 

With nonoperating gains, including $196.2 million investment income, Advocate Aurora posted  net income of $361.1 million in the third quarter of 2021. In the third quarter of 2020, Advocate Aurora posted net income of $479.5 million. 

For the nine months ending Sept. 30, Advocate Aurora recorded a net income of $1.5 billion on $10.3 billion in revenue. In the same nine-month period in 2020, Advocate Aurora saw a net loss of $434.9 million on $9.5 billion in revenue. 

"The change in operations between the nine months ended Sept. 30, 2021, and the nine months ended Sept. 30, 2020, were impacted by the COVID-19 pandemic, which began having a significant negative impact on operations in March 2020," the company said in the documents. "As vaccination rates have increased and other mitigation strategies to contain the virus along with remediation efforts that have taken effect in 2021, operations have improved in the nine months ended Sept.30, 2021."

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.