Cincinnati-based Bon Secours Mercy Health reported an operating income of $133 million (1% margin) for the year ended Dec. 31, 2024, a significant turnaround from the $172 million operating loss (-1.4% margin) recorded in 2023, according to financial documents published March 14.
Seven things to know:
1. Total operating revenue rose 8.9% year over year to $13.3 billion. Net patient service revenue grew to $11.9 billion from $11 billion in 2023, while other operating revenue increased 13.8% to $1.4 billion.
2. Total operating expenses increased 5.6% year over year to $13 billion. Labor costs rose 2.3% to $6.3 billion, while purchased services and supply costs climbed to $1.9 billion and $2.7 billion, respectively.
3. Admissions rose 4.1% year over year to 372,936, and emergency room visits increased 3.6% to 1.65 million. Physician visits saw a 7.8% increase, while outpatient surgeries grew 1.3%.
4. After accounting for nonoperating items, including $460 million in investment gains, Bon Secours Mercy Health reported a net income of $572 million for 2024, up from $222 million in 2023.
5. The system repaid $185.7 million in debt during the year, bringing total long-term debt to $3.9 billion. It also maintained a strong cash position, with days cash on hand at 218 days, down slightly from 221 in 2023.
6. In 2024, Bon Secours Mercy Health restructured its ownership in Roper St. Francis Healthcare, increasing its stake from 51% to 80%. It also formed a 50/50 joint venture with Compassus for home health and hospice operations, generating a $91.5 million nonoperating gain.
7. Bon Secours Mercy Health plans to expand access in 2025 by growing its ambulatory footprint, including ambulatory surgery and urgent care centers, CFO Travis Crum said during an episode of “Becker’s CFO and Revenue Cycle Podcast.”
“If you think about the traditional view of healthcare, it’s continuing to invest back into the growth of the 30-plus service lines that we track and report out across our communities, ultimately trying to make sure we meet the needs of the communities where we are,” Mr. Crum said. “[On] the future side of it, it’s making sure that we’re investing in new and innovative ways of doing things.”
