Phoenix Children’s reports $120M loss even as revenues stay strong

Phoenix Children’s Hospital reported a nine-month loss of $120.5 million even as its revenues stayed robust and contributed to an overall positive operating income of $88 million. The overall decline was a result of investment challenges that resulted in $207.5 million of losses for the period ended Sept. 30.

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Operating revenues for the period increased to total $973.6 million compared with $930.5 million for the same period last year. Expenses increased about 10 percent, mainly because of employee compensation and benefits.

But it was the investment income that gave the hit to the bottom line. The $207.5 million loss compared with $72.3 million in income in 2021.

The hospital group is on an expansion tear, with projects scheduled for completion by the end of 2024. 

These include Phoenix Children’s Hospital-East Valley, a five-story hospital slated to open in 2023 on the Mercy Gilbert (Ariz.) Medical Center campus. Phoenix Children’s Hospital-Arrowhead Campus, a three-story pediatric hospital, should open in Glendale, Ariz., in 2024. 

More details on these projects can be found in this Nov. 21 interview with the hospital’s CEO, Robert L. Meyer.

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