Sioux Falls, S.D.-based Sanford Health reported a net income of $242.3 million in 2021, a decrease of 28 percent from 2020, according to its financial results released Feb. 14.
The 46-hospital system also recorded an operating revenue of more than $7.1 billion for the 12 months ended Dec. 31, 2021, compared to $6.6 billion in 2020. Its operating expenses grew by 7.5 percent in 2021 to $6.8 billion.
Net patient revenue represented the largest source of operating income for the system at $4.1 billion in 2021, compared to $3.6 billion in 2020. Sanford had 86,421 admissions in 2021, up from 82,848 admissions in 2020.
Sanford's biggest expense category was salaries and benefits which reached $3.5 billion in 2021, an increase of nearly 5 percent from 2020.
Its operating income increased in 2021 to $367.6 million, which represents an operating margin of 5.2 percent. This represents an 18 percent increase from 2020, where the health system saw operating income of $311.4 million and an operating margin of 4.7 percent.
Sanford Health recorded a loss on nonoperating activities in 2021.