Cleveland Clinic reported a $14.9 million operating loss in the third quarter of 2023, resulting in an operating margin of -0.4%, compared with a $28.3 million loss and a -0.9% operating margin year over year, according to financial documents published Nov. 29.
The health system saw revenues of $3.6 billion in the quarter ending Sept. 30, up from $3.3 billion over the same time period last year. Expenses increased to $3.4 billion from $3.1 billion over that period in 2022.
"The growth in expenses is primarily due to higher patient volumes and inflationary trends that increased salaries, wages and benefits, supplies expenses and pharmaceutical costs," the health system said in the report. "Nationwide labor shortages have created staffing challenges that have resulted in increased overtime costs and premium pay for employed caregivers as well as an increase in the utilization of agency nurses and other temporary personnel to meet the demand of patient activity."
Cleveland Clinic added in the report that agency personnel costs "have remained elevated in the third quarter of 2023 but are below peak levels experienced during 2022 due to various workforce strategies implemented by the system to reduce its reliance on agency personnel."
Salaries, wages and benefits increased 8.1% in the third quarter, compared to the same period in 2022. Supply expenses increased 11.6% over the same period last year and pharmaceutical costs increased 21.1%.
Days of revenue in accounts receivable was 55, compared to 52 over the same period last year, according to the report. Cleveland Clinic has 308 days of cash on hand, compared to 333 at the same time last year.