Allina Health's revenue declined year over year in the first quarter of 2020, and the Minneapolis-based health system ended the period with an operating loss, according to recently released financial documents.
Allina's revenue declined 1.3 percent year over year to $1.05 billion in the first quarter of 2020, which ended March 31.
"The impact of the COVID-19 pandemic and related public health mandates is reflected in revenue loss over the last two weeks of March of approximately $85 million," the health system said. "In an attempt to offset revenues losses due to its COVID-19 response, Allina Health has been pursuing access to state grants and special funding available under the CARES Act and other sources, as well as implementing employee furloughs and other cost saving measures."
As of May 7, the health system had received $85.8 million from the $100 billion emergency fund allocated to hospitals and other healthcare providers in the CARES Act. The health system also received $321 million in advance Medicare payments from CMS, which must be repaid.
Allina's operating expenses climbed 3.4 percent year over year, and it ended the first quarter of 2020 with an operating loss of $67.5 million. In the first quarter of 2019, Allina posted an operating loss of $17.2 million.
After factoring in nonoperating items, including a $245.4 million loss on investments, Allina ended the first quarter of this year with a net loss of $342.5 million. In the same period a year earlier, the health system posted net income of $81.7 million.
As of March 31, the health system had 204 days cash on hand, compared with 239 days as of Dec. 31.