Federal aid helps Prisma Health avoid operating loss

Federal relief aid helped Prisma Health earn an operating income in the nine months ended June 30, according to recently released financial results. Without the aid, the 18-hospital system in Greenville, S.C., would have recorded an operating loss. 

Five things to know about the system's financial results:

1. Prisma Health recorded an operating income of $25.8 million and nonoperating income of $634,000 in the nine-month period in fiscal 2020. This compares to an operating income of $29.2 million and a nonoperating gain of $10.9 million in the same period for fiscal 2019. 

2. Prisma Health received $195.8 million in provider relief funding from the Coronavirus Aid Relief and Economic Security Act. The health system said without the aid it would have recorded an operating loss of $68.6 million.

3. In the first nine-months of fiscal year 2020, Prisma recorded revenue of $3.6 billion, up from $3.3 billion in the same period last year. 

4. The health system's expenses also increased to about $3.6 billion, up from $3.2 billion in the same period in fiscal 2019. Prisma Health said the increase in expenses was mainly driven by $101.4 million in salary, supply and overhead costs incurred in the system's response to the pandemic.

5. Overall, the system recorded a net income of $26.4 million in the nine-month period for fiscal 2020. This compares to a net income of $40.1 million in the same period one year prior. 

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