15 health systems reporting Q1 financial results

It's typically the big for-profit health and hospital systems that are among the first to report financial results, and we saw that again for the first quarter with the likes of HCA Healthcare, Universal Health Services, Tenet Health and CHS all quick off the blocks.

But there has also been a slew of nonprofit health systems reporting their first-quarter 2023 and full-year 2022 performance. Here is a roundup of some of those results:

1. Roseville, Calif.-based Adventist Health reported a $241 million operating loss for the full year of 2022 as expenses rose 5.3 percent.

While revenues edged higher for the 23-hospital system, the $5.6 billion of expenses dragged down losses, adding to the $149 million operating loss in 2021.

2. Charlotte, N.C.-based Atrium Health reported a $105.2 million full-year 2022 operating loss, compared with a $311 million gain in 2021.

The system, with 27 acute care facilities, reported 2022 operating expenses of $7.8 billion, 8.3 percent higher than 2021. Of that total, personnel costs accounted for $4.6 billion, 7.3 percent higher than 2021.

3. Pensacola, Fla.-based Baptist Health Care has reported first-quarter positive operating income of $1.4 million on $211.2 million of revenue.

The numbers came as the two-hospital system said its overall salaries and benefits expenses were down 8.7 percent on the same quarter last year. 

4. Minneapolis-based Fairview Health Services reported a net operating loss of $315.4 million for 2022 amid a 6.4 percent increase in operating costs which are "driving intense margin pressure," according to an April 20 filing.

The $315.4 million figure extended a $132.6 million loss in 2021. The operating loss for the final quarter of 2022 was $66.9 million compared with a $3.1 million loss for the same period in 2021.

Fairview Health is due to merge with Sioux Falls, S.D.-based Sanford Health and expects to close the $14 billion transaction "in the second half of 2023," the filing said.

5. Indianapolis-based Indiana University Health reported higher operating revenue and income in the first quarter compared to one year ago. 

The 16-hospital system, which posted a net loss of $715 million in 2022, saw operating revenue in the first quarter increase 8 percent year over year to $2.08 billion, according to a May 1 news release. First-quarter operating expenses rose 4 percent year over year to $2.04 billion.

6. Oakland, Calif.-based Kaiser Permanente reported $233 million in operating income for the first quarter, up from a $72 million operating loss in the first quarter of 2022. Its operating margin grew from -0.3 percent in the first quarter of 2022 to 0.9 percent in the first quarter of this year.

For the three months ended March 31, Kaiser's health plan, hospitals and their respective subsidiaries posted $25.2 billion in revenue and $25 billion in expenses, compared to $24.2 billion and $24.3 billion, respectively, for the same period last year.

7. New York City-based Memorial Sloan Kettering Cancer Center saw a swing from a $235.1 operating gain in 2021 to a 2022 operating loss of $248.1 million.

The $483 million swing was largely due to an 11.6 percent increase in expenses year over year. Total revenue for 2022 was $6.6 billion, up 3.6 percent, according to a financial report from the health system.

8. Tacoma, Wash.-based MultiCare reported a first-quarter operating loss of $59.9 million, adding to similar losses experienced in 2022 when it reported a $287.4 million operating loss for the full year.

The 12-hospital system, which said it began to experience improved contract labor costs toward the end of last year, said salaries and expenses rose 13.7 percent in the first quarter compared with the same period in 2022.

9. Fort Wayne, Ind.-based Parkview Health System reported audited operating income of $61.2 million as expenses rose 10.4 percent on the year.

The seven-hospital system reported operating income of $155.8 million in 2021. Revenue was up almost 6 percent on 2021, totaling $2.7 billion.

10. Vancouver, Wash.-based PeaceHealth reported a lower operating loss for the nine months ending March 31, but its operating margin remains in the red.

The 10-hospital system, whose operating loss in the period totaled $191.8 million, reported a -4.3 percent operating margin. That data compared with a loss of $208.6 million and a -14.4 percent operating margin in the period ending March 31, 2022.

11. St. Louis-based SSM Health, a 27-hospital system, reported April 27 an operating loss of $68.4 million for the final quarter of 2022.

That figure is largely in line with a previously reported 2022 loss of $248.9 million. 

12. Sacramento, Calif.-based Sutter Health reported $88 million in operating income for the first quarter of 2023 on revenues of $3.8 billion.

Such figures compared with $95 million operating income on $3.6 billion of revenues in the same period last year.

13. Neenah, Wis.-based ThedaCare reported operating income of $3.6 million for the first quarter of 2023 on revenue of $306.4 million.

That positive income compared with an operating loss in the same period of 2022 of $5 million on almost $282.9 million revenue.

ThedaCare and Milwaukee-based Froedtert Health are intending to merge, with closing of the transaction expected by the end of the year.

14. Cleveland-based University Hospitals recorded a $302.1 million operating loss in 2022, a sharp downturn compared with $104.5 million operating income in 2021.

While revenue edged up slightly on the previous year to total $5.4 billion, expenses rose 9 percent to total $5.7 billion.

15. Atlanta-based Wellstar Health System reported a $135.8 million operating income for the nine months ended March 31 on $3.6 billion of revenue.

Overall income for the health system in the nine-month period totaled $235.5 million as compared to $79.7 million in 2022.

Wellstar Health is expecting to close its controversial merger agreement with Augusta (Ga.) University Health System in the summer.

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