The 4.6% operating margin improvement from FY 2023 to FY 2024 is a significant turnaround, but PeaceHealth still has some work to do to return to profitability.
While operating revenue increased 6% year over year to $3.5 billion, expenses rose 2.3% to $3.4 billion. Interest, taxes, and depreciation and amortization dragged down the nine-hospital system’s performance.
Net patient service revenues increased 7.1% year over year. While discharges grew by 4.5%, patient days were down 4% leading to a decrease in average length of stay from 5.18 days to 4.76 days over the previous fiscal year. Emergency room visits decreased 2.5%, total surgeries increased 4.5% and clinic worked RVUs were up 7.9%.
“Decreased length of stay, driven by decreased COVID inpatients and a focus on reducing length of stay, generated an average daily census 4.3% below prior year levels impacting staffing needs,” the system said in its financial report. “With a tight labor market, contract labor continues to be a focus. Successful PeaceHealth actions are starting to return contract labor to pre pandemic levels and was down 62% compared to prior year.”
PeaceHealth ended FY 2024 with 201 days of cash on hand, compared to 220 in FY 2023.
After accounting for nonoperating items, such as investment returns, the health system ended FY 2024 with a net income of $86.6 million, compared to a net loss of $108.3 million in FY 2023.
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
