Financial headwinds, such as rising labor and supply costs, continued to challenge health systems during the third quarter.
Below are 14 systems that recorded operating losses during the three-month period ended Sept. 30; however, several systems on the list saw year-over-year improvements:
Editor's note: This is not an exhaustive list. Systems are listed in alphabetical order.
1. Pittsburgh-based Allegheny Health Network reported an operating loss of $40 million (-3% margin) in the third quarter of 2024, an improvement from an operating loss of $60.1 million (-5% margin) in the third quarter of 2023. Total revenue for the system was $1.3 billion in the third quarter, an 8% increase from $1.2 billion during the same period in 2023. Expenses were $1.3 billion in the third quarter, up 9.3% from $1.2 billion during the same quarter last year.
2. St. Louis-based Ascension reported a $221 million operating loss (-3.1% margin) in the first quarter of its fiscal year, the three months ending Sept. 30, compared to a $193.7 million operating loss (-2.7%) in the same quarter last year. Revenue for the three months ending Sept. 30 decreased 2.5% year over year to $7.1 billion while expenses decreased 1.5% to $7.3 billion. However, Ascension reported a 2.4% increase in same facility net patient service revenue, while same facility operating expenses were managed to a 2.6% increase over the prior year.
3. Cambridge, Mass.-based Beth Israel Lahey Health reported a $138.8 million operating loss (-6.1% margin) for the three months ending Sept. 30, down from a $10.6 million operating gain (0.5% margin) during the same period last year. Revenue for the quarter increased 15.6% year over year to $2.26 billion while expenses grew by 23.3% to $2.39 billion
4. Cincinnati-based Bon Secours Mercy Health, posted a $46.5 million operating loss (-1.4% margin) in the third quarter of 2024, improving on the $67.5 million loss (-2.1% margin) reported in the third quarter of 2023. Revenue increased 8.8% year over year to $3.27 billion for the three months ended Sept. 30. Expenses grew by 7.8% to $3.3 billion.
5. Chicago-based CommonSpirit reported an operating loss of $331 million (-3.5% operating margin) in the first quarter of fiscal 2025, an improvement from a $402 million operating loss (-4.7% margin) reported over the same period last year. CommonSpirit reported total operating revenues of $9.4 billion for the three months ended Sept. 30, up 10.7% from the same period last year. The system reported total operating expenses of $9.7 billion in the first quarter of 2025, a 9.4% increase over the same period last year.
6. Franklin, Tenn.-based Community Health Systems saw an operating loss of $205 million (-6.6% margin) in the third quarter of 2024, ended Sept. 30, down from an operating income of $173 million (5.6% margin) during the same period last year. The system reported $3.09 billion in total revenue for the three months ended Sept. 30, 2024, a 0.1% increase from $3.86 billion during the third quarter of 2023. Total expenses for CHS were $3.3 billion in the third quarter of 2024, up 13.1% from $2.9 billion during the same period last year.
7. Philadelphia-based Thomas Jefferson University, owner of Jefferson Health, posted a $77.6 million operating loss (-3% margin) in the first fiscal quarter of 2025, compared to a $48 million operating loss (-2% margin) in the same quarter last year. Jefferson posted total revenue of $2.6 billion in the three months ended Sept. 30, up 9% from $2.4 billion over the same period last year. Total expenses were $2.6 billion in the first quarter, up 10.1% from $2.4 billion over the same period last year.
8. Oakland, Calif.-based Kaiser Permanente posted a $608 million operating loss (-2.1% operating margin) in the third quarter of 2024, down from an operating income of $156 million (0.6% operating margin) in the same quarter last year, according to its Nov. 8 financial report. Kaiser posted an operating revenue of $29 billion in the three months ended Sept. 30, up 16.4% from $24.9 billion over the same period in 2023. The system reported operating expenses of $29.6 billion in the third quarter, up 19.6% from $24.7 billion over the same period last year.
9. Dayton, Ohio-based Premier Health reported an operating loss of $12 million (-1.9% margin) in the three months ended Sept. 30, 2024, an improvement from a $28.3 million operating loss (-4.9% margin) during the same time period in 2023. Premier's total revenue was $621.7 million in the three months ended Sept. 30, 2024, a 8% increase from $575.8 million during the same period in 2023. Total expenses for the health system were $633.2 million in the quarter, a 5% increase from $602 million over the same period last year.
10. Renton, Wash.-based Providence posted an operating loss of $208 million (-2.7% operating margin) in the third quarter of 2024, an improvement from a $319 million operating loss (-4.3% margin) recorded during the same period last year. The system reported operating revenues of $7.6 billion for the three months ended Sept. 30, a 5.7% increase over the same period last year. Operating expenses totaled $7.8 billion in the third quarter, a 4.1% increase year over year.
11. St. Louis-based SSM Health saw an operating loss of $21.8 million (-0.8% margin) in the third quarter of 2024, ended Sept. 30, up from a $35.1 million operating loss (-1.4% margin) during the same time period in 2023. Total revenue for the health system was $2.9 billion for the three months ended Sept. 30, a 12% increase from $2.6 billion during the same period in 2023. Total expenses for the health system were $2.9 billion in the same quarter, up 12% from $2.6 billion during the same quarter last year.
12. West Reading, Pa.-based Tower Health reported an operating loss of $14.2 million (-3% operating margin) in the first quarter of 2025, ended Sept. 30, 2024, an improvement from a $19.1 million operating loss (-4.2% operating margin) during the same period last year. Total revenue for the health system was $479.8 million in the first quarter of 2025, a 4.9% increase from $457.4 million during the same time period the previous year. Tower Health's total expenses were $494 million in the first quarter of 2025, a 3.7% increase from $476.5 million in the first quarter of 2024.
13. Burlington, Mass.-based Tufts Medicine reported an operating loss of $68.2 million (-10.2% margin) in the third quarter, compared to a $61 million loss (-9.6% margin) recorded in the same period in 2023. Third-quarter revenue increased 5.4% year over year to $671.1 million while expenses grew by 6% to $739.3 million.
14. Pittsburgh-based UPMC reported an operating loss of $57.6 million (-0.7% margin) in the third quarter ended Sept. 30, 2024, up from a $191 million operating loss (-2.8% margin) reported during the same time period in 2023, according to the system's most recent financial report. UPMC saw a total revenue of $7.7 billion in the third quarter of 2024, a 13% increase from $6.8 billion over the same period in 2023. Total expenses for the health system were $7.8 billion for the three months ended Sept. 30, 2024, an 11% increase from $7 billion from the same period last year.