Catholic Health Initiatives, a nonprofit 103-hospital system based in Englewood, Colo., recorded an operating loss of $483.3 million in fiscal year 2016, compared to an operating surplus of $23.9 million in the year prior.
CHI reported revenue of $15.9 billion in FY 2016, up 7.4 percent from $14.8 billion in FY 2015.
However, rising expenses offset the system's revenue gains. CHI said expenses increased 10.2 percent year over year to $16.1 billion in FY 2016.
"Lower patient volumes, higher labor costs, increased pharmacy prices and reduced reimbursement in Medicare and Medicaid all contributed to CHI's financial performance in the 2016 fiscal year," the system said in a written statement.
CHI ended FY 2016 with a net loss of $703.2 million, compared to a net gain of $113.6 million in FY 2015.
CHI officials expect financial performance to improve in FY 2017. "CHI is focused on several key areas for increased efficiency and expense reduction — including labor, supply chain, administrative overhead, revenue cycle and pharmacy services," the system said. "We are confident these efforts will yield substantial improvement in overall operating and financial performance as we progress through the current fiscal year."
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