McLaren attributed the decrease in operating income to rising labor and benefit costs as well as the increased costs of supplies and pharmaceuticals.
Revenue increased 0.7% year over year to $6.66 billion while expenses rose 1% to $6.58 billion.
The health system reported a $123.8 million increase in salaries and wages and employee benefits and payroll taxes, which increased 7.4% and 7.1%, respectively. The increases are primarily due to pay increases, locum tenens physicians and additional physicians onboarded in 2024.
McLaren reported $511.1 million in net income for FY 2024, compared to a net loss of $278.5 million in FY 2023. As of Sept. 30, long-term debt for the health system stood at $1.65 billion.
