Return to profitability some years off, Fairview says as it reports losses

A return to financial health involving "decisive and measured actions" could take multiple years, management at Minneapolis-based Fairview Health warned as the healthcare system revealed multimillion-dollar losses in 2022.

"Management is committed to improving the financial condition of the organization and getting back to profitability, but expects this will be a multi-year process," the company said in a Jan. 9 filing.

Fairview reported a net operating loss for the nine months ending Sept. 30, 2022, of $248.5 million amid higher expenses. Operating costs rose 5.5 percent year over year, while reimbursement rates are only going up between 1 and 2 percent, Fairview said, creating "intense margin pressure."

Investment losses in 2022 totaled $314.4 million compared with a $125.3 million gain in 2021.

Fairview and Sioux Falls, S.D.-based Sanford Health announced plans to merge Nov. 15. The planned transaction is attracting scrutiny because of potential antitrust implications.

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