Here are financial updates from 29 health systems:
1. Chicago-based CommonSpirit reported an adjusted operating loss of $291 million on revenue of $8.9 billion for the first quarter of fiscal 2024, ending Sept. 30. The adjusted figure compares with an operating loss of $227 million in the same period last year with revenue of $8.5 billion. Salaries and benefits increased $174 million or 3.9% over the prior-year period. The overall net loss for the 142-hospital system totaled $738 million as CommonSpirit reported net investment losses of $289 million.
2. Livonia, Mich.-based Trinity Health reported an operating loss of $58.6 million in the first quarter of the fiscal year — the three months ended Sept. 30 — compared to a $146.3 million loss during the same period in 2022. Operating revenue for the quarter increased 12.4% year over year to $5.6 billion while expenses rose 10.3% to $5.7 billion. Overall for the three-month period, Trinity posted a $211.5 million net loss, compared to a $565 million loss for the same period last year.
3. Irving, Texas-based Christus Health, a 60-hospital system, reported $324.5 million in operating income in fiscal year 2023, which ended June 30, up from a $286.4 million operating gain in the previous fiscal year. Revenue increased 6.1% year over year to $7.8 billion while expenses rose 5.8% to $7.5 billion. Under expenses, Christus’ employee compensation and benefits increased 1.8% year over year to $3.5 billion and supply costs grew by 9.3% to $1.3 billion. Labor cost per adjusted discharge decreased 7.6%. Christus ended FY 2023 with a net income of $409.2 million, up from $210 million the previous year.
4. Oakland, Calif.-based Kaiser Permanente reported $156 million in operating income for the third quarter, up from a $75 million operating loss in the third quarter of 2022. For the three months ended Sept. 30, Kaiser’s health plan, hospitals and their respective subsidiaries posted $24.9 billion in revenue and $24.7 billion in expenses, compared to $24.3 billion and $24.3 billion, respectively, in the same period of the prior year. Net income for the third quarter was $239 million, up from a net loss of $1.5 billion in the third quarter of 2022.
5. Nashville, Tenn.-based HCA Healthcare, a 183-hospital system, reported an operating income of $1.63 billion in the third quarter, a 4.1% drop from the $1.7 billion reported in the third quarter of 2022. Revenues in the third quarter totaled $16.21 billion, compared to $14.97 billion in the third quarter of 2022, while expenses hiit $14.58 billion, up from $13.27 billion. For the nine months ending Sept. 30, HCA revenues totaled $47.67 billion and expenses hit $42.30 billion, compared to $44.74 billion and $39.46 billion, respectively, in the same period in 2022. Net income hit $3.64 billion, up slightly from $3.56 billion in the prior-year period.
6. Franklin, Tenn.-based Community Health Systems reported $173 million in third-quarter net income, down from $204 million in the same period last year. CHS had net operating revenues of $3.09 billion in the quarter, up 2% over the same period last year. On a same-store basis, net operating revenues increased 5.1% in the three months ended Sept. 30. The system posted a $91 million net loss in the third quarter, down from a net loss of $42 million over the same period last year. For the nine months ended Sept. 30, CHS reported a net loss of $180 million, compared to a loss of $369 million over the same period last year.
7. Dallas-based Tenet Healthcare reported $568 million in third-quarter operating income, down from $596 million in the prior-year period. The operating margin for the three months ending Sept. 30 was 11.2%, or $568 million, compared with 12.4% in the same period, or $596 million, in 2022. Net income for the period totaled $101 million on revenue of $5.1 billion, compared with a net income of $131 million on revenue of $4.8 billion in the third quarter of 2022.
8. King of Prussia, Pa.-based Universal Health Services posted an operating gain of $285.4 million in the third quarter, up from $275.9 million in the third quarter of 2022. Revenue increased 6.8% year over year to $3.6 billion. Expenses in the third quarter hit $3.3 billion, up from $3.1 billion in the third quarter of 2022. Net income for the period was $167 million, compared with $182.8 million during the third quarter of 2022.
9. Renton, Wash.-based Providence posted a $310 million operating loss in the third quarter, down from a $164 million loss in the same period last year. Despite a 5% year-over-year increase in third-quarter revenue, the 51-hospital system’s overall performance was affected by a 7% increase in expenses — largely driven by wage increases, higher supply costs and higher costs to serve patient volumes. EBIDA was $104 million — the fifth consecutive quarter of positive results — and net operating losses were $310 million. Investment losses drove $71 million in non-operating losses in the quarter.
10. Rochester, Minn.-based Mayo Clinic reported an operating income of $302 million in the third quarter, up from $157 million in the same period last year. Third-quarter revenue increased 8.2% year over year to $4.5 billion while expenses rose 4.8% to $4.2 billion. Net income for the third quarter was $21.1 billion, compared with $16.6 billion in the same period in 2022.
11. Pittsburgh-based UPMC reported a $177 million loss on revenues of $20.6 billion for the nine months ending Sept. 30, compared with a $196 million gain on revenues of $18.9 billion during the same period in 2022. Operating margin for the year was -0.9% as of Sept. 30, compared with 1% for the nine-month period last year. Year over year for the nine-month period, revenues for the 35-hospital system increased 9.3% to $20.6 billion while expenses grew by 11.4% to $20.8 billion. As of Sept. 30, 2023, unrestricted cash and investments over long-term debt decreased $181 million compared to Dec. 31, 2022. Days in accounts receivable at Sept 30, 2023, and Dec. 31, 2022, were 43 and 45, respectively.
12. Charlotte, N.C.-based Advocate Health posted operating income of $79.4 million in the first nine months of 2023. The 67-hospital system, formed after Charlotte-based Atrium Health merged with Advocate Aurora Health, posted $721.2 million of excess revenue over expenses in the three quarters ended Sept. 30. Advocate Health posted $22.83 billion in revenue, with expenses hitting $22.75 billion over the nine-month period. It has seen a $625.7 million return on investment in the first nine months of the year.
13. Phoenix-based Banner Health posted $149.4 million in operating income on revenues of $10.3 billion for the nine months ending Sept. 30, compared with a $113.2 million operating loss on revenues of $9.3 billion for the same period in 2022. Year over year for the nine-month period, revenues increased 11.2% to $10.3 billion while expenses grew by 8.2% to $10.2 billion. The 30-hospital system ended the nine-month period with a net income of $425.3 million, compared with a net loss of $839.1 million during the same period last year.
14. Salt Lake City-based Intermountain Health reported $157 million in operating income on revenues of $11.9 billion for the nine months ending Sept. 30, compared to a $285 million operating gain on revenues of $10.2 billion for the same period in 2022. Year over year for the period, Intermountain’s operating margin decreased by 1.5% to 1.3%, revenues increased 16.4% to $11.9 billion and expenses increased 18.2% to $11.2 billion. The health system ended the nine-month period with a net income of $912 million, down from $2.2 billion in the prior-year period.
15. St. Louis-based Ascension reported an operating loss of $3 billion on revenue of $28.35 billion for the fiscal year ended June 30, compared with an $879.2 million loss on $27.98 billion in revenue last year. The $3 billion figure includes $1.5 billion of nonrecurring losses and impairment in the fiscal year ending June 30. That $1.5 billion figure compares with a gain of $26 million in 2022. Expenses rose 4.% over the previous year to total $29.9 billion. Salaries and wages decreased 2.5% to total $11.8 billion. Net loss for the 140-hospital system totaled $2.5 billion as investment returns helped mitigate the operating decline. Net loss for the prior year totaled $1.9 billion.
16. New Hyde Park, N.Y.-based Northwell Health reported a $11.6 million operating loss in the third quarter, compared to a $92.4 million gain in the third quarter of 2022. Revenue increased 5.8% year over year to $4.1 billion while expenses increased 8.6% to $4.2 billion. Under expenses, salaries increased 11.3% to $2.2 billion and employee benefits were up 8.8% to $454 million. Northwell’s net income and net margin for the nine months ending Sept. 30, were $449.2 million and 3.5%, respectively, compared to a net loss and net margin of $1.2 billion and 11.6% for the prior-year period.
17. Cleveland Clinic reported a $14.9 million operating loss in the third quarter of 2023, compared with a $28.3 million loss during the same period in 2022. The health system saw revenues of $3.6 billion in the quarter, up from $3.3 billion in the prior-year period, while expenses increased to $3.4 billion from $3.1 billion. Salaries, wages and benefits increased 8.1% in the third quarter, compared to the same period in 2022. Supply expenses increased 11.6% over the same period last year and pharmaceutical costs increased 21.1%. Overall for the quarter, Cleveland Clinic posted a $127.4 million net loss, a substantial improvement on the $469.2 million loss it posted in the same period last year.
18. Chicago-based Northwestern Medicine posted $352.3 million in operating income during fiscal year 2023, a 5% increase on the $335.8 million it reported in the previous fiscal year. Total revenue increased 9.2% year over year to $8.7 billion while expenses rose 9.4% to $8.4 billion. Under expenses, salaries increased 11.1% to $528.2 million and supplies increased 11% to $1.9 billion. The 11-hospital system ended FY 2023 with an overall gain of $1.1 billion, a significant improvement on the $688.6 million net loss it reported last year.
19 Peoria, Ill.-based OSF HealthCare reported an operating income of $1.2 million in its FY 2023, which ended Sept. 30, compared with a $115 million operating loss in FY 2022. Revenue was $4.1 billion in FY 2023, up by $269.4 million or 7.1% over the prior year. Expenses for the year were $4.1 billion, increasing by $153.3 million or 3.9% over FY 2022. After factoring in nonoperating items, the 15-hospital system reported $323.8 million in net income, compared with a loss of $426.7 million in FY 2022.
20. St. Louis-based Mercy, the sixth largest Catholic healthcare system in the country, topped $8 billion in revenue in its latest fiscal year and reported operating income of $11.8 million.The $8.02 billion revenue figure for the year ending June 30 and positive operating income compared with revenue of $7.5 billion and an operating loss of $13.6 million in 2022. Salary expenses rose 5.3% to total $4.56 billion. Net income totaled $104.4 million, compared with an overall loss of $299.3 million in 2022.
21. Nashville, Tenn.-based Vanderbilt University Medical Center reported operating income of $28 million in the first quarter of the fiscal year, compared to an $11 million operating loss in the prior-year period.In the fiscal first quarter, operating revenue increased 11% year over year to $1.8 billion while expenses rose 9% to $1.77 billion. After factoring in the performance of its investment portfolio and other nonoperating items, Vanderbilt ended the quarter with a bottom line gain of $45 million, compared to a $17 million net loss in the first quarter of FY 2023.
22. Greenville, S.C.-based Prisma Health transformed a $67.6 million operating loss in fiscal year 2022 into a $67.1 million gain in FY 2023. Revenue increased 5.8% year over year to $6 billion and expenses rose 3.4%. Though labor costs increased in FY 2023, Prisma said the spike was mitigated by decreased length of stay and reduced contract labor. Prisma reported a net gain of $268.3 million compared to the prior year loss of $418.4 million, resulting in an excess margin of 4.3% and -7.8%, respectively.
23. San Diego-based Scripps Health reported a $36.6 million operating loss in FY 2023, down from an operating gain of $49.3 million in the previous fiscal year. Revenue increased 4.1% year over year to $4.3 billion while expenses rose 6.3% to $4.3 billion. The four-hospital system ended the 2023 fiscal year with a net gain of $335.2 million, a significant improvement on the $502.9 million loss it reported the previous year.
24. Boston-based Mass General Brigham posted a $48 million operating loss for the fiscal year ending Sept. 30, a significant improvement on the $432 million loss reported last year. The $48 million loss excludes one-time revenues largely related to federal transfers connected to the pandemic. Operating revenue was $18.8 billion in FY 2023, increasing 12% over 2022. Operating expenses increased 9% year over year to $18.7 billion. The five-hospital system reported an overall gain of $1.2 billion in the fiscal year, compared to an overall loss of $2.3 billion in the previous fiscal year.
25. Providence, R.I.-based Lifespan Health posted $8.6 million in operating income in FY 2023 after seeing a $56 million loss in 2022. Patient service revenues increased by $227.9 million (9.6%) in 2023 while discharges increased by 5.3%, resulting in a $166.1 million patient revenue boost. Expenses increased by $224.2 million (7.8%) due primarily to increases in compensation and benefits of $131.5 million (7.5%) and supplies and other expenses of $90.4 million (12.1%). After factoring in nonoperating items, Lifespan reported an overall gain of $37.3 million, compared to a $186.8 million deficit last year.
26. York, Pa.-based WellSpan Health reported an operating loss of $5.8 million in the fiscal year first quarter, down from an $11.6 million gain in the same period last year. Quarterly revenue increased 3.3% year over year to $928 million and expenses rose 5.3% to $933.8 million. The eight-hospital system ended the three-month period with a net loss of $42.9 million, a 49% improvement on the $84.1 million loss it posted in the same period last year.
27. Greensburg, Pa.-based Independence Health System, formed when Excela Health and Butler Health System merged Jan. 1, reported operating losses of $22.7 million on operating revenue of $261.8 million for the three months ending Sept. 30. These losses are close to the operating loss predictions for the fiscal year ending June 30, 2024, the publication reports. Butler reported $13.5 million in operating losses for 2022, $40.7 million for 2023, and $13.1 million in the first quarter of 2024. Excela saw $9.7 million in operating losses for the three months ending Sept. 30, up from $2 million in losses last year. Operating as subsidiaries of Independent Health, the two systems are reporting their financial results separately for bond reporting requirements.
28. New York City-based Montefiore Health System saw its operating margins improve to -0.5% for the nine months ending Sept. 30, up from -2.6% for the same period last year. Year over year for the nine-month period, revenue increased 8.4% to $5.61 billion and expenses increased 6.8% to $5.64 billion. Its operating loss for the nine-month period was $28.6 million in 2023, compared with $136.1 million in the prior-year period. The 10-hospital system ended the nine-month period with a net loss of $21.2 million, compared with a net loss of $308.5 million for the same period in 2022.
29. West Reading, Pa.-based Tower Health continues to make progress on its performance improvement plan as its operating margin for the three months ended Sept. 30 rose to -4.2% from -8% during the same period in 2022. Its operating cash flow margin also increased from -0.9% to 2.3%. During the first quarter of fiscal 2024, revenue decreased 2.9% year over year to $457.4 million. Expenses decreased 6.4% to $476.5 million. Tower’s operating loss for the period was $19.1 million, compared with a loss of $37.6 million for the prior-year period. The health system ended the three-month period with a net loss of $20.9 million, compared with a net loss of $37.6 million for the same period in 2022.
