Memphis, Tenn.-based Baptist Memorial Health Care told investors it is meeting budget targets as it seeks to lower operating losses in fiscal 2023.
The healthcare system also said on the Feb. 14 investor call that it hired Huron Consulting Group in January to help with such targets.
While the healthcare system reported an operating loss of $220.2 million in fiscal 2022, it is seeking to bring that figure down to a $140 million loss in fiscal 2023, which started Oct. 1. So far, it's working, CFO Bill Griffin told the call.
"We are right on budget with a $45 million operating loss in the first quarter," he said. "January has also been on budget so we are right at budget, the trend continues."
Baptist Memorial, which is in the top 40 healthcare systems in the country, operating 22 hospitals in its home state as well as Arkansas and Mississippi, currently has 182 specific initiatives aimed at either increasing revenue or saving costs to the tune of a net gain of $235 million, said CEO Jason Little. These are focused on areas such as labor costs and revenue cycle management processes.
The system will also continue to look for merger and acquisition opportunities that will not require any cash outlay, Mr. Griffin said, adding that Baptist Memorial aims to spend approximately $127 million on capital projects this year.