Henry Ford posts $80M operating gain, 1% margin

Detroit-based Henry Ford Health reported $80.5 million in operating income (1% margin) in 2023, a substantial improvement on the $138,000 gain (0% margin) reported in the previous year, according to financial documents published March 13. 

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Total revenue for the health system increased 10% year over year to $7.8 billion while total expenses were up 9% to $7.7 billion. 

Labor costs increased 6% year over year to $3.3 billion in 2023. The health system attributed this to the impact of wage programs implemented during the two years coupled with increased staffing to meet volume needs, partially offset by a decreasing reliance upon temporary staffing and modest improvements in productivity. 

Henry Ford’s supply costs grew by 13.4% year over year to $1.6 billion. Most of the variance relates to increased patient and pharmacy volumes. 

After factoring in nonoperating items, such as investment returns, Henry Ford ended 2023 with a $302.9 million net profit, compared to a $235.9 million net loss in 2022. Days cash on hand was 144 days on Dec. 31, 2023, compared to 145 days a year earlier. 

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