Detroit-based Henry Ford Health System's net income decreased by 90.6 percent in 2021 to $39.4 million, compared to $420.3 million in 2020, according to its financial results released March 14.
Henry Ford — which operates five acute care hospitals and two psychiatric hospitals — reported a 4.7 percent increase in total revenue in 2021 to $6.8 billion, compared to $6.5 billion in 2020. This revenue increase was largely attributed to a jump in net patient service revenue, which reached $4.2 billion in 2021, up from $3.7 billion in 2020.
The system's expenses also rose for the 12 months ended Dec. 31 to about $7 billion, an 11 percent increase from 2020 at $6.3 billion. Salaries, wages and employee benefits increased by 8 percent year over year to $3 billion in 2021 from $2.8 billion in 2020.
Henry Ford reported an operating loss of $168.2 million in 2021, representing an operating margin of -2.5 percent. The year prior, it had an operating income of $225.6 million. The system attributed the loss to the cost of COVID-19 and net premium deficiency reserve, and would have had a net operating income of $125 million without those two factors, according to the report.