Dignity Health records $41.7M operating loss as expenses grow

Dignity Health saw revenue increase in the quarter that ended March 31, but rising expenses offset the San Francisco-based system’s revenue gains.

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For the three-month period that ended March 31, its third fiscal quarter, Dignity recorded revenues of $3.2 billion, up from $3 billion in the same period of the year prior. The financial boost was partially attributable to an increase in patient volume. When adjusted for outpatient activity, admissions were up 3.8 percent in the third quarter compared to the same period of the year prior.

However, growing expenses, including costs associated with wages and benefits, took a toll on the system’s finances. Dignity said expenses increased 9.7 percent year over year to $3.2 billion in the third quarter of FY 2016.

Dignity ended the third quarter with an operating loss of $41.7 million. That’s compared to an operating gain of $39.9 million in the same quarter of 2015.

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