Trinity Health reports $1.4B annual loss

Higher labor costs put pressure on Trinity Health's margins in fiscal year 2022, according to financial documents released Sept. 30. 

Livonia, Mich.-based Trinity Health posted revenue of $19.93 billion in the 12 months ended June 30, down from $20.16 billion a year earlier. The health system said net patient service revenue was up 1.8 percent year over year, primarily because of increased outpatient volume and payment rates. 

Excluding provider relief funding, Trinity's revenue was up 1.8 percent in the most recent fiscal year. 

Trinity Health's operating expenses for fiscal year 2022 increased 4 percent year over year to $20.1 billion. The increase was driven by an 8.2 percent year over year increase in labor costs. 

"Contract labor costs reached unprecedented highs during fiscal year 2022," the health system said in an earnings release. "Targeted efforts to reduce these costs were realized during the fourth quarter of the fiscal year 2022, with June costs decreasing 60 percent from the peak reached in March." 

Trinity Health reported an operating loss of $206.27 million in the 12 months ended June 30, compared to operating income of $657.58 million a year earlier. 

After factoring in investments and nonoperating items, Trinity posted a net loss of $1.4 billion for fiscal year 2022. A year earlier, the health system reported net income of nearly $3.9 billion.

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