Despite continued high labor costs, inflation and the rising costs of medical equipment and supplies, some nonprofit health systems reversed operating losses from the second quarter of 2023 and are back in the black in the second quarter of this year.

While many health systems continue to see sustainable improvements to their financial results, others are still working to improve upon their losses. 

Surveys of employers are making one thing clear: Healthcare costs are rising faster than they did before the pandemic, and those costs are being driven by inflation, the increasing use of weight loss medications, and higher overall medical expenses. As employers and insurers grapple with these escalating costs, hospitals will undoubtedly be affected. 

Chillicothe, Ohio-based Adena Health System reported $3.3 million in operating income (1.8% margin) in the second quarter, reversing a $2.9 million loss (-1.6% margin) from the same period in 2023, according to financial documents published Aug. 27.

Dallas-based Steward Health Care is set to close two of its Massachusetts hospitals, Boston-based Carney Hospital and Ayer-based Nashoba Valley Medical Center, at 7 a.m. Aug. 31.

Providence, R.I.-based Lifespan reported an operating income of $11.5 million (1.3% margin) in the third quarter of 2024, up from an operating income of $8.8 million (1.1% margin) posted over the same period last year. 

MedHQ, a healthcare advisory and administrative service provider, has acquired Trajectory Revenue Cycle Services. 

Boston-based Tufts Medicine posted a $40.7 million operating loss (-7.9% margin) for the three months ended June 30, improving on the $61.9 million loss (-9.6% margin) reported in the same period during 2023, according to financial documents published Aug. 30.

Fitch downgraded DuBois, Pa.-based Penn Highlands Healthcare's rating from "A-" to "BBB."

Pittsburgh-based Allegheny Health Network reported an operating loss of $25.9 million (-2.1% margin) in the second quarter of 2024, an improvement over a $47.8 million operating loss (-4.2 margin) posted over the same period last year. 

Cambridge, Mass.-based Beth Israel Lahey Health reported a $23.3 million operating loss (-1% margin) for the three months ended June 30, compared to a $15.3 million loss (-0.8% margin) in the same period in 2023. 

Hospitals' latest financial results point to the beginning of a slow and sustained recovery Fitch said in an Aug. 12 report.

West Des Moines, Iowa-based UnityPoint Health reported $33.9 million in operating income (2.6% margin) in the second quarter, reversing a $4.2 million operating loss (-0.4% margin) in the same period last year. 

Providence, R.I.-based Lifespan and Lawrence (Mass.) General Hospital have entered into definitive agreements with Dallas-based Steward Health Care to acquire four of Steward's Massachusetts hospitals after Massachusetts Gov. Maura Healey shared that deals had been reached "in principle." 

The University of Rochester (N.Y.) Medical Center has implemented a temporary hiring freeze at some of its hospitals amid ongoing financial headwinds and rising labor costs, a spokesperson for the system confirmed to Becker's.

New York City-based Montefiore Health System reported operating income of $32.3 million (0.8% margin) in the first half of 2024, up from an operating loss of $17.5 million over the same period last year. 

New Hyde Park, N.Y.-based Northwell Health reported operating income of $76.8 million (1.7% margin) in the second quarter of 2024, down from the second quarter of 2023's $169.2 million (4% margin). 

Dallas-based Steward Health Care filed an Aug. 28 notice, obtained by Becker's, to designate Orlando (Fla.) Health as the successful bidder for its northern Florida assets.

Lebanon, N.H.-based Dartmouth Health reported $41.9 million in operating income (1.2% margin) for the fiscal year ending June 30, reversing the $45.3 million operating loss (-1.5% margin) posted in the previous fiscal year. 

New York City-based New-York Presbyterian reported an operating income of $100.6 million (3.8% margin) in the second quarter, a $76.8 million decrease from the $177.5 million operating gain (6.5% margin) for the same period in 2023.