Halifax Health suffers from contract labor costs but posts positive operating income

Daytona Beach, Fla.-based Halifax Health reported positive operating income in 2022 even as contract labor costs continued to pose the system a significant challenge.

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Halifax Health, which operates three hospital locations, reported $20.8 million in operating income for the period ended Sept. 30, 2022. Declines in investment values dragged down overall income to a loss of $7.4 million.

Total operating expenses increased by $37.4 million in fiscal 2022 compared to 2021, Halifax said, primarily due to an increase in purchased services of $35.2 million from contract labor. Overall, the cumulative effect of the COVID-19 pandemic resulted in estimated operating expenses increasing by $55.3 million for 2022 and $33 million for 2021, Halifax management said.

Halifax’s main location is a 673-bed facility in Daytona Beach. It also operates a community hospital at Port Orange about 10 miles south of the main campus and a behavioral health complex 2 miles north.

In May 2022, the Port Orange facility received an “F ‘grade from The Leapfrog Group, one of only 17 locations nationwide to do so.

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