Lehigh Valley reports $23M net loss in 2022 as expenses rise, investments decline

Allentown, Pa.-based Lehigh Valley Health Network, which operates 13 hospitals and numerous other clinical care sites in Eastern Pennsylvania, reported a net loss of $23.6 million for the fiscal year ending June 30, 2022, amid higher labor costs and losses on investments. That figure compared with a net gain of $402 million in 2021.

The group, which opened three new hospitals during the year, reported higher patient revenue of $3.7 billion during the year compared with 2021, but its expenses totaled $3.75 billion, 14 percent higher than last year.

"The significant expense increases were attributable mainly to higher costs associated with wages, supplies and purchased services across most LVHN locations," LVHN management said in a statement.

Meanwhile, investment losses totaling $109.6 million compared to gains of $269.5 million in 2021, contributing to a decline in days of cash in hand from 216 last year to 150 in 2022.

The news adds to challenges the group faces with the likely loss of significant amounts of Aetna insurance coverage from March next year.

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