Marshfield Clinic reports $32.6M Q1 operating loss

Inflationary pressures and problems arising from the implementation of a health records system have added to Marshfield (Wis.) Clinic's financial challenges, which led the system to report a $32.6 million operating loss in the first quarter.

Total operating expenses in the first three months of this year were $812.3 million, a 7.1 percent increase, or $53.7 million, compared with the same period last year.

Salaries, contract labor and benefits expenses accounted for 41.5 percent of the total expenses.

"The negative financial results of the system are driven by a continuing convergence of factors, including additional costs related to inflation pressures on wages and supplies, the effects of the One System EHR implementation that is causing an unexpected level of productivity disruptions reducing revenues and additional operational costs to support the activations," management said in the filing.

The first quarter loss built on a 2022 operating loss of $367.9 million on revenue of almost $3 billion. Long-term debt increased by $30.5 million as of March 31.

The 11-hospital system has been working with consultants to reduce costs and estimates a possible $185 million in annual savings.

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