Cleveland Clinic posts $1.2B net loss in 2022; investments hit hard while expenses climb

Cleveland Clinic posted a $1.2 billion net loss in 2022 — down from a net gain of $2.2 billion the prior year — as losses from investments ate into its bottom line, according to financial results released March 1.

In 2022, the 22-hospital system reported an operating loss of $211.3 million compared with an operating income of $746.3 million in 2021.

Total unrestricted revenues increased 4.5 percent year over year to $13 billion. This is largely attributable to net patient service revenue, which was $11.6 billion in 2022 and $10.9 billion in 2021. 

The system's total expenses increased 13.6 percent year over year to $12.5 billion in 2022. Expenses were up across all categories, with salaries, wages and benefits seeing the biggest increase at 13.8 percent.

Losses from investments in 2022 were $1 billion compared to a gain of $1.4 billion in 2021. 

For the three months ended Dec. 31, 2022, Cleveland Clinic reported $290.1 million in net profit and $104.9 million in operating income, compared with $532.8 million in net income and $196.8 million in operating income during the same period in 2021

Fourth-quarter 2022 revenues were $3.5 billion, up from $3.3 billion the prior year, while expenses hit $3.2 billion, up from $2.9 billion.

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