CHI posts $134.7M operating loss in Q1 of 2015

Englewood, Colo.–based Catholic Health Initiatives, a national nonprofit health system, reported a $134.7 million operating loss on $3.2 billion in revenue in the first quarter of fiscal year 2015, according to financial statements released by CHI.

The operating loss was a significant change from the $184.2 million surplus CHI reported for the same period last year.

The news comes after CHI's recent announcement that it will cut 1,500 positions by the end of January.

The job cuts, which represent 1.7 percent of the of the 105-hospital system's workforce, are partly attributable to less people using CHI services, according to The Denver Post.

"As a result of lower-than-expected operating and financial performance in the first quarter of the 2015 fiscal year, Catholic Health Initiatives and its market organizations will take action to reduce expenses across the system," CHI spokesman Michael Romano said in the report. "The losses were due to a number of external and internal factors, including reduced utilization of services."

CHI also recently reached a settlement with the federal government.The settlement, which was reached on Dec. 1, is related to the Department of Justice's nationwide review of whether hospitals, at times, met CMS reimbursement criteria for charges related to implantable cardio-defibrillators, according to CHI's financial statements. In its financial statements, CHI said the settlement is not believed to have had any material adverse effect on its financial position or results of operations.