Essentia Health's operating income down 49% in fiscal 2020

Essentia Health, a 14-hospital system based in Duluth, Minn., reported year-over-year revenue growth in the fiscal year ended June 30, but it ended the period with lower operating income, according to unaudited financial documents

Here are six things to know: 

1. The health system reported revenue of $2.19 billion in the 12 months ended June 30, up from $2.17 billion a year earlier. 

2. Essentia has received $112 million in grants made available under the Coronavirus Aid, Relief and Economic Security Act, $81 million of which it recognized in fiscal 2020 revenue. 

3. The system's revenue growth was offset by higher expenses, which climbed 2 percent year over year to $2.16 billion. 

4. Essentia said patient volume was down significantly in late March and April due to the COVID-19 pandemic and started to recover in May and June. 

5. The health system ended the most recent fiscal year with operating income of $27.1 million, down 49 percent from $53.5 million a year earlier. 

6. After factoring in nonoperting items, the system ended the fiscal year with a net loss of $15.9 million, compared to net income of $98.3 million a year earlier. 

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