Danville, Pa.-based Geisinger Health posted a net income of $366.6 million in 2023, after posting a net loss of $834 million in 2022, according to its financial report for the year ended Dec. 31.
The health system saw an operating loss of $37 million in 2023, following an operating loss of $239 million in 2022, according to the report.
Geisinger's operating revenue was $7.7 billion for the year, an 11.7% improvement over the same period in 2022. Premium revenue increased by 8.5% and net patient service revenue increased 13.4%.
Expenses were $7.8 billion, an 8.5% increase over 2022, according to the report. The health system said inflationary pressures that had a "profound impact" from 2020 through 2022 were partially mitigated in 2023. It attributed this to management initiatives that targeted the inflationary pressures and successfully reduced monthly run rates of contract labor hours and rates.
The system had a net gain of $407.2 million from investing and financing activities after posting a net loss of $602.7 million in 2022, according to the report.
In April 2023, Oakland, Calif.-based Kaiser Permanente announced an agreement to acquire Geisinger in a deal that would make the system the first to join Risant Health, a new nonprofit organization created by the Kaiser Foundation Hospitals. Geisinger said in the report the deal is expected to close this year, subject to regulatory approval.