Cleveland Clinic has reported a $21.4 million operating loss, resulting in an operating margin of -0.6 percent, compared with a $183.5 million loss and an operating margin of -5.9 percent in the second quarter of 2022, according to financial documents published Aug. 23.
Revenue in the second quarter increased 14.9 percent year over year to $3.6 billion while expenses increased 9.4 percent to $3.4 billion.
Salaries, wages and benefits rose 8.9 percent year over year to $2.1 billion in the second quarter.
Cleveland Clinic attributed growth in expenses to higher patient volumes and inflationary trends that increased salaries, wages and benefits, supplies expenses and pharmaceutical costs.
The system continued to see strong patient demand in the second quarter, higher than that of Q2 2022, and net patient revenue also benefited from rate increases on the system's mmanaged care contracts that took effect in 2023.
After factoring in nonoperating items, the 23-hospital system ended the second quarter with a $145.2 million net gain, up from a $786.9 million net loss in the second quarter of 2022.
As of June 30, Cleveland Clinic had 318 days of cash on hand, compared with 334 days of cash on hand on Dec 31.