Stamford Health posts $20.7M operating loss in FY17; CFO to resign

While Stamford (Conn.) Health recorded an uptick in revenue during fiscal year 2017, the hospital's expenses outpaced gains.

Here are five things to know about the hospital's fiscal year 2017 results.

1. Stamford Health reported revenue of $583.3 million for the fiscal year ended Sept. 30, 2017, according to recent financial statements. That's up 3.5 percent from $563.5 million recorded in 2016. Stamford Health attributed the increase to an uptick in net patient service revenue from increased hospital and service use.

2. At the same time, Stamford Health's expenses jumped 8.2 percent from $558.4 million in fiscal year 2016 to $604 million for fiscal year 2017. The $45.6 million year-over-year increase in expenses comprised salaries and benefits, supplies, depreciation and interest. 

3. After factoring in nonoperating gains, Stamford Health ended fiscal year 2017 with a $20.7 million operating loss, compared to a $5.1 million operating gain in the previous year. The hospital also ended fiscal year 2017 with a net loss of $9.9 million, compared to net income of $10.6 million in 2016.

4. A Stamford Health spokesperson said fiscal year 2017 "was a tough year for a number of reasons," including hospital tax increasing, which totaled $30 million for Stamford. In addition, Stamford Health opened a 600,000-square-foot hospital in fiscal year 2017.

"A state healthcare market that was flat most of the year" also affected fiscal year 2017 performance, Jean Hitchcock, interim marketing and communications lead at Stamford Health, told Becker's Hospital Review. "We actually gained market share but utilization was below what was anticipated. To address this, significant cost reduction took place in FY 2017 that combined with improved market conditions, has led to significantly improved operating results" in the first quarter of fiscal year 2018.

5. The financial documents note Stamford Health's Senior Vice President and CFO Kevin Gage announced his resignation, effective Sept. 1. Mr. Gage will maintain his roles until his resignation, and then pursue a different opportunity outside the provider side of healthcare. Stamford Health will conduct a national search for his replacement. 

Editor's note: This article was updated with comment from Stamford Health.

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