Lifespan posts $8.6M operating income in 2023 a year after $56M loss

Providence, R.I.-based Lifespan Health posted $8.6 million in operating income in fiscal 2023 after posting a $56 million loss in 2022, according to the health system's fourth-quarter financial report. 

Excess revenues over expenses were $37.3 million for the year ended Sept. 30, compared to a $186.8 million deficit last year, according to the report. 

Patient service revenues increased by $227.9 million (9.6%) in 2023. Discharges increased by 5.3%, which resulted in $166.1 million in additional patient service revenue. 

Changes in payer mix and rate resulted in a net increase of $78.3 million (3%) while uncompensated care increased by $19.1 million (11.2%).  

Other revenues increased by $53.3 million (20.3%) in 2023 compared to 2022, primarily due to Lifespan's retail and contract pharmacies ($41.3 million) and favorable adjustments within value-based care models and shared savings ($10 million).

Total operating expenses increased by $224.2 million (7.8%) in 2023 due primarily to increases in compensation and benefits of $131.5 million (7.5%) and supplies and other expenses of $90.4 million (12.1%).

The system saw $28.7 million in non-operating gains in fiscal 2023, compared to non-operating losses of $130.8 million last year. 

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