Despite continued high labor costs, inflation and the rising costs of medical equipment and supplies, some nonprofit health systems reversed operating losses from the second quarter of 2023 and are back in the black in the second quarter of this year.
Five nonprofit systems that drove operating margins back into the black in the second quarter:
1. Cleveland Clinic saw an operating income of $45.3 million (1.2% margin) in the second quarter, compared to a $21.4 million operating loss (-0.6% margin) during the second quarter of 2023. Total revenue for the system was $3.9 billion in the second quarter, up from $3.6 billion during the same period last year. Net income was $187.8 million, up from $145.2 million during the second quarter of 2023.
2. West Des Moines, Iowa-based UnityPoint Health reported $33.9 million in operating income (2.6% margin) in the second quarter, reversing a $4.2 million operating loss (-0.4% margin) in the same period last year. Second-quarter revenue increased 12.9% year over year. Net income for the second quarter was $61.4 million, compared to $1.4 million in the same period last year.
3. Cincinnati-based Bon Secours Mercy Health reported $30.1 million in operating income (0.9% margin), a more than $123 million improvement on the $92.9 million operating loss (-3.1% margin) posted in the second quarter of 2023. Second-quarter revenue increased 8.7% year over year to $3.25 billion. Bon Secours Mercy reported a net income of $143.1 million for the second quarter, compared to a $25.2 million net loss for the same period in 2023.
4. San Diego-based Scripps Health posted an operating income of $75.8 million (6.2% margin) in the third quarter, up from an operating loss of $33.9 million (-3.2% margin) in the same period last year. Total operating revenues were $1.2 billion for the three months ended June 30, up from $1.1 billion posted over the same period last year. Scripps posted a net income of $134.4 million in the third quarter up from $90.9 million in the same quarter last year.
5. Chillicothe, Ohio-based Adena Health System reported $3.3 million in operating income (1.8% margin) in the second quarter, reversing a $2.9 million loss (-1.6% margin) from the same period in 2023. Second-quarter revenue increased 0.4% year over year. Net income for the quarter was $4.5 million, compared to a net loss of $5.6 million in the second quarter of 2023.