Fairview Health Services reports operating loss of $132M in 2021

Minneapolis-based Fairview Health Services reported an operating loss in 2021 of $132.6 million, less than the $208.8 million loss it reported in 2020, according to its recently released financial report.

The three-hospital system had a net income of $24.5 million in 2021, compared to a loss of $20.7 million in 2020.

Fairview posted an operating revenue of $6.4 billion, a 5.8 percent increase from 2020, in which it reported operating revenue of $6.1 billion. Its patient service revenue rose by 10.5 percent, to $5.8 billion, for the 12 months ended Dec. 31, compared to $5.2 billion for the same period in 2020.

Fairview's expenses also increased in 2021 to $6.6 billion, up 4.4 percent from 2020 at $6.3 billion. Salaries and benefits represented a large chunk of the system's expenses, $2.9 billion in 2021, a 3.2 percent increase from 2020, when those expenses were $2.8 billion. Supplies were also up in 2021, at $1.9 billion, compared to $1.7 billion in 2020.

The COVID-19 pandemic continued to challenge Fairview in 2021 due to reduced nonemergency procedures and increased operating expenses. Supplies and the use of temporary staffing also presented financial challenges for the system.

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