Minneapolis-based Fairview Health Services reported a net operating loss of $315.4 million for 2022 amid a 6.4 percent increase in operating costs which are "driving intense margin pressure," according to an April 20 filing.
The $315.4 million figure extended a $132.6 million loss in 2021. The operating loss for the final quarter of 2022 was $66.9 million compared with a $3.1 million loss for the same period in 2021.
Fairview's overall loss in 2022 totaled $462.8 million, compared with net income of $31.2 million in 2021, but the system did enjoy a $90 million bump from investment gains in the final three months of 2022.
The key, however, remains getting control over the growing rift between revenue and expenses returns, Fairview said.
"Management is committed to improving the financial condition of the organization and getting back to profitability, but expects this will be a multi-year process," management said in the filing.
Fairview Health is due to merge with Sioux Falls, S.D.-based Sanford Health and expects to close the $14 billion transaction "in the second half of 2023," the filing said.