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.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.