Advocate Aurora Health saw revenue decline year over year in the first half of this year, and it ended the period with an operating loss, according to recently released unaudited financial documents.
Advocate Aurora Health, which was formed in 2018 and has dual headquarters in Downers Grove, Ill., and Milwaukee, reported revenue of $2.9 billion in the second quarter of 2020, down from $3.2 billion in the same period a year earlier. Patient service revenue declined 23 percent year over year, while capitation revenue dropped 11 percent.
Looking at the first six months of this year, the health system's revenue was down 3.4 percent year over year.
Advocate Aurora said it began postponing or canceling elective procedures on March 17 due to the COVID-19 pandemic, and the public curtailed visits to physicians, clinics and emergency rooms for fear of contracting the virus.
"These actions have served to decrease revenues from non-COVID-19 patients while driving up costs to prepare for and care for COVID-19 patients with minimal additional revenues from these patients," Advocate Aurora said. "While operating results have improved due to the restart of elective procedures and clinic visits, the system continues to be impacted by COVID-19."
To help offset financial damage linked to the COVID-19 pandemic, the health system received $362 million in grants in the first six months of this year made available through the Coronavirus Aid, Relief and Economic Security Act.
Advocate Aurora posted an operating loss of $217 million in the second quarter of this year, compared to operating income of $132.3 million in the same period a year earlier. For the first six months of this year, the health system's operating loss totaled $302.7 million.
After factoring in nonoperating items, the health system reported net income of $407.9 million in the second quarter and a net loss of $914.4 million in the first half of this year.
The net loss for the first six months of 2020 was due to an increase in expenses and a nonoperating loss of nearly $600 million, which was primarily due to investment losses. In the first half of 2019, the system reported nonoperating income of $782.6 million.