Springfield-based Memorial Health reported an operating income of $29.5 million (1.8% operating margin) in fiscal 2024, an improvement from an operating loss of $74 million (-4.8% margin) in fiscal 2023, according to its Nov. 26 financial report.
Senior Vice President and CFO Katie Keim told Becker's that over the past year and a half, the system made a "strategic decision to focus on the core functions of our mission and to cease programs that were nonessential."
"This realignment allowed the organization to reduce the workforce by 6% year over year, with leadership positions reduced by 20%, resulting in salaries and benefits savings that put the health system on stronger financial footing," Ms. Keim said. "Since then, the organization has maintained ongoing vigilance and implemented processes to proactively manage labor costs and non-clinical positions. This labor savings, combined with other cost reduction and revenue growth opportunities including strategic reimbursement improvements, has led to an over $100 million turnaround in operating performance."
Memorial Health recorded total revenues of $1.6 billion for the fiscal year ended Sept. 30, a 6.5% increase year over year. The system reported net patient service revenues of $1.4 billion, a 2.9% increase year over year.
The system recorded total expenses of $1.6 billion in fiscal 2024, down 0.2% year over year. Salaries wages and benefits totaled $834 million, a 3.9% decrease year over year.
Memorial Health ended the fiscal year with 220 days cash on hand, up from 191 at the end of the 2023 fiscal year.