New York health system improves operating margin from -10.8% to -4.2%

Middletown, N.Y.-based Garnet Health reported a $25.6 million loss (-4.2% margin) for the nine months ending Sept. 30, compared to a $59.3 million loss (-10.8% margin) for the same period in 2023.

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Revenue for the nine-month period increased 10.6% year over year to $604.6 million while expenses grew by 4% to $630.2 million, according to financial documents published Nov. 14. 

Salaries and wages increased 5.2% year over year to $267.5 million and employee benefits rose 16.6% to $112.7 million. Supply costs increased 1.5% to $100.8 million.

In June, Garnet Health laid off 26 employees, about 1% of its workforce, and restructured some operations and services, according to a news release shared with Becker’s. The workforce reductions equated to about $4.6 million in salaries and benefits costs and affected staff in management, union and non-union positions. 

After accounting for nonoperating items, such as investment returns, Garnet Health reported a $14.9 million net loss for the nine months ending Sept. 30, compared to a $51.4 million net loss during the same nine months in 2023. 

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