Bon Secours Mercy Health launches plans to boost system as it reports $402.9M operating loss

Cincinnati-based Bon Secours Mercy Health said it has put in place a number of initiatives that could boost the system by $280 million.

That news comes as the 48-hospital system reported an operating loss of $402.9 million on $11.1 billion of revenues in 2022. Those figures compared with an operating gain of $125.9 million on revenues of $10.9 billion in 2021.

Expenses increased 6.8 percent over the year. Investment declines dragged the net loss for 2022 down to $1.2 billion compared with net income of $997.7 million in 2021.

While the "challenging investment market environment" was a significant factor in the overall loss, expenses were driven by sustained labor shortages, a high inflationary environment and supply chain disruptions, Bon Secours Mercy said.

"Management continues to take proactive actions to manage these evolving financial and operational challenges and ensure that the health system can deliver services to the communities it serves," Bon Secours Mercy said. "Management has initiated actions to reduce employment and purchased services expenses."

The initiatives leading to the $280 million boost are expected to be fully implemented before the end of 2023.

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