Northwell's operating income drops $104M in Q3

New Hyde Park, N.Y.-based Northwell Health reported a $103.9 million drop in operating income in the third quarter, from a $92.4 million gain in the third quarter of 2022 to an $11.6 million loss in the third quarter of this year, according to financial documents published Nov. 29. 

Revenue increased 5.8% year over year to $4.1 billion while expenses increased 8.6% to $4.2 billion. Under expenses, salaries increased 11.3% to $2.2 billion and employee benefits were up 8.8% to $454 million. 

The 23-hospital system attributed revenue growth to increases in patient volume, payment rates, revenue cycle initiatives, pharmacy sales and the growth of its ambulatory and physician network.

For the nine months ended Sept. 30, Northwell's operating income and margin was $135 million and 1.1%, respectively, compared to $133.1 million and 1.2% for the same period in 2022. Revenue grew by $1.02 billion or 8.9% during the nine-month period while expenses increased $1.02 billion or 9%. 

Northwell’s net income and net margin for the nine months ending Sept. 30, were $449.2 million and 3.5%, respectively, compared to a net loss and net margin of $1.2 billion and 11.6% for the prior-year period. 

Operating results continue to be affected by inflation and staffing challenges, but management continues to focus on the recovery and evolution of operations and improve operating results through various initiatives. Such initiatives include those focused on patient access and additional revenue opportunities through new and enhanced facilities, expanding diversified revenue streams, physician recruitment and revenue cycle programs.

Northwell said it is also focused on reducing expenses through operational efficiency efforts, program consolidation and supply chain initiatives.

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