Despite seeing stable or higher revenue year over year, several health systems that recorded results in March ended 2021 with significant operating losses.
Many of the health systems attributed the operating losses to expenses tied to the COVID-19 pandemic, including rising contract labor and supply costs.
For example, Providence, a 52-hospital system based in Renton, Wash., ended 2021 with an operating loss of $714 billion despite seeing a 6 percent increase in net revenue. In 2020, Providence recorded an operating loss of $306 million. The health system attributed the operating loss to expenses, which rose 10 percent compared to 2020.
Additionally, New York City-based Montefiore Health System saw its operating loss swell to $294 million in 2021. In 2020, the health system posted a $14.7 million operating loss. The 10-hospital system's operating revenue fell slightly in the year, by less than 1 percent, while its expenses increased 3.8 percent.
The same trend was seen for Detroit-based Henry Ford Health System. The system reported a 4.7 percent increase in total revenue but an 11 percent increase in expenses in 2021 compared to 2020. Overall, the health system, which operates five acute care hospitals and two psychiatric hospitals, ended 2021 with an operating loss of $168.2 million. The previous year, it had an operating income of $225.6 million.