Cleveland Clinic reported an operating income of $43.4 million (1.1% margin) in the third quarter, reversing a $14.9 million operating loss (-0.4% margin) in the same period last year.
Third-quarter revenue increased 9.3% year over year to $3.98 billion while expenses grew by 7.7% to $3.74 billion, according to financial documents published Nov. 26. The growth in expenses was mainly due to higher patient volumes and inflationary trends that increased labor, supply and pharmaceutical expenses.
"Nationwide, labor shortages for licensed caregivers continued to create staffing challenges, resulting in ongoing utilization of agency nurses and other temporary personnel to meet the demand of patient activity," the health system said in its financial report. "Agency utilization and costs have remained elevated in 2024 but are below levels experienced during 2023 due to various workforce strategies implemented by the System to reduce its reliance on agency personnel."
Days of cash on hand was 315 as of Sept. 30, compared to 308 for the same period in 2023. Long-term debt was $4.56 billion, compared to $4.31 billion for the same period last year.
After accounting for nonoperating items, such as investment returns, Cleveland Clinic posted a net income of $374,823 in the third quarter, compared to a net loss of $127.4 million in the same period last year.