Texas Health posts operating loss, gets $93M in federal relief aid

Arlington-based Texas Health Resources ended the first quarter of this year with an operating loss, according to recently released unaudited financial documents

Texas Health Resources reported operating revenues of $1.12 billion in the first quarter of 2020, down 3.6 percent from $1.15 billion in the same period a year earlier. While revenues were down year over year, expenses climbed 1.4 percent. 

The health system ended the first quarter of this year with an operating loss of $13.8 million, compared to operating income of $42.5 million in the same period of 2019. 

Texas Health Resources is one of several health systems to end the first quarter with an operating loss, and many healthcare organizations continued to face financial challenges after the first quarter ended March 31. Year over year, operating margins for hospitals fell 282 percent in April, the first full month hospitals dealt with the effects of COVID-19, according to a report from Kaufman Hall. 

After factoring in nonoperating items, including $831 million in investment losses, Texas Health Resources reported a net loss of $802.9 million in the first quarter of this year. In the same quarter of 2019, the health system reported net income of $463.3 million. 

Texas Health Resources said it has received about $93 million in federal grants from the $175 billion in relief aid Congress allocated to hospitals and other healthcare providers to cover expenses and lost revenues tied to the COVID-19 pandemic. The funds do not have to be repaid as long as the health system meets the terms and conditions of receiving the relief aid. 

More articles on healthcare finance:
20 large hospital networks received $5B in federal bailout funds
10 physician specialties that generate the most revenue for hospitals
Essentia Health lays off 900 employees


© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.