Henry Ford Health operating income drops to $6.5M through Q3

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Henry Ford Health System, a five-hospital system based in Detroit, Mich., saw a net income of $152.5 million in the nine months ended Sept. 30, a 50.6 percent drop from the same period in 2020, according to its quarterly financial report released Nov. 15.

The health system's total revenue without donor restrictions was $5.1 billion in the first nine months of this year, a 4.7 percent increase from the same period last year. Net patient service revenue increased by 18.5 percent year over year to $3.2 billion. The increase was attributed to higher patient volume. The health system reported more discharges, emergency room visits and inpatient and outpatient surgeries in the first nine months of this year than in the same period of 2020. 

Total expenses in the nine months ended Sept. 30 reached $5.1 billion, a 10.5 percent increase from the same period in 2020. Henry Ford Health System saw expenses increase across several categories, including labor and supplies. Salaries, wages and employee benefits increased by $162 million year over year. The increase was attributed to several factors, including usage of temporary staffing to fill critical vacancies and initiatives designed to address the competitive labor market. 

The health system saw an operating income of $6.5 million in the first nine months of this year, a drop of 97.5 percent year over year. Excluding COVID-19 relief funds, the system reported an operating loss of $14 million. Henry Ford Health said it expects mutations of COVID-19 and low consumer confidence levels will continue to affect revenue throughout 2021.

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