Financial updates from 21 systems: Mayo, Providence and more

Most health systems have reported financial results for the second quarter and first six months of the year, with many seeing higher expenses eat into revenue gains and some seeing improved operating margins. 

Here are 21 health systems that recently released financial results:

Note: This is not an exhaustive list.

1. Nashville, Tenn.-based HCA Healthcare posted $1.81 billion in operating income for the second quarter, compared with $1.76 billion during the second quarter of 2022. Revenues for the three-month period totaled $15.86 billion compared with $14.8 billion during the prior-year period. Expenses rose 7.6 percent to $14.05 billion with salaries and benefits up to $7.3 billion, a 7.1 percent year-over-year increase. Net income for the period hit $1.19 billion, a 3.3 percent year-over-year increase from the $1.16 billion it posted in the second quarter of 2022. 

2. Oakland, Calif.-based Kaiser Permanente reported $741 million in operating income for the second quarter, up from $89 million in the same period last year. For the three months ended June 30, Kaiser's health plan, hospitals and their respective subsidiaries posted $25.2 billion in revenue and $24.4 billion in expenses, compared to $23.5 billion and $23.4 billion, respectively, for the same period last year. Net income for the 39-hospital system was $2.1 billion compared to a net loss of $1.3 billion last year during the same period.

3. Dallas-based Tenet Healthcare posted $604 million in second-quarter operating income, up from the $553 million it recorded in the same period last year. While revenues rose almost 10 percent to total $5.1 billion in the period, overall expenses also rose, resulting in an operating margin of 11.9 percent for both the second quarters of 2023 and 2022. Net income for the second quarter hit $123 million, compared with $38 million in the same period last year.

4. Rochester, Minn.-based Mayo Clinic reported $300 million in operating income in the second quarter, up from $155 million in the same period in 2022. Expenses totaled $4.2 billion for the second quarter. At $2.4 billion, salaries and benefits rose 5.9 percent over the same period last year. The system's days' cash on hand totaled 346 as of June 30 compared with 377 at the same date in 2022. Net income in the second quarter was $547 million versus a $604 million net loss in the same period in 2022.

5. Renton, Wash.-based Providence posted a $202 million operating loss in the second quarter, an improvement on the $424 million operating loss recorded in the same period last year. In the first six months of 2023, revenue hit $14 billion, compared to $12.7 billion during the same period last year. Expenses were $14.6 billion, compared to $13.6 billion over the same period in 2022. Operating losses for the first six months were $547 million compared to $934 million last year. 

6. St. Louis-based SSM Health reported a $39.6 million operating loss in the second quarter, a slight improvement on the $49.8 million loss during the same period in 2022. Revenue in the second quarter increased 12.6 percent to $2.59 billion while expenses rose 11.9 percent to $2.64 billion. The second-quarter results follow a $16.5 million operating loss in the first quarter.

7. Cleveland Clinic reported a $21.4 million operating loss in the second quarter, compared with a $183.5 million loss in the same period last year. Revenue in the second quarter increased 14.9 percent year over year to $3.6 billion while expenses increased 9.4 percent to $3.4 billion. The 23-hospital system ended the second quarter with a $145.2 million net gain, up from a $786.9 million net loss in the second quarter of 2022. 

8. Salt Lake City-based Intermountain Health posted $184 million in operating income during the first six months of 2023, a 35 percent year-over-year drop. Revenue for the six-month period increased 21.8 percent year over year to $7.9 billion, while expenses rose 24.4 percent to $7.4 billion. The 33-hospital system ended the first six months of 2023 with a $1.1 billion net gain, compared with a $2.7 overall gain in the prior-year period. 

9. Charlotte, N.C.-based Advocate Health posted $85.7 million in operating income in the first six months of the year. Advocate posted $15.19 billion in total revenue and $15.1 billion in total expenses in the first half of 2023. For the three months ended March 33, the first full quarter as a 67-hospital system, Advocate reported $10.4 million in operating income — representing a 0.1 percent operating margin — and an overall gain of $578.7 million.

10. Franklin, Tenn.-based Community Health Systems reported $246 million in second-quarter operating income, up from a $119 million operating income during the same period last year. Salaries and benefits totaled $1.3 billion, up 3.2 percent year over year, but totaled 42.9 percent of revenues compared with 44.1 percent in the same period last year. CHS posted a $38 million net loss for the quarter, compared with a loss of $326 million in the same period in 2022.

11. Phoenix-based Banner Health reported $162.7 million in operating income for the first six months of 2023, up from an $87.2 million operating loss during the same period last year. Total revenues were $6.9 billion in the six months ending June 30, compared to $6.2 billion in the prior-year period Total expenses were $6.8 billion, up 7.1 percent year over year, with a 4.7 increase in labor costs and a 12.4 percent increase in supply costs.

12. Grand Blanc, Mich.-based McLaren Health Care posted $62.9 million in operating income for the second quarter, a 28 percent dip from the $87.4 million it reported in the prior-year period. Year over year for the quarter, expenses increased 5.3 percent to $4.8 billion while revenue rose 4.8 percent to $4.9 billion. Net income hit $350.5 million for the quarter, compared with a $167.7 million net loss during the second quarter of 2022.

13. King of Prussia-based Universal Health Services recorded $280.1 million in operating income in the second quarter, improving on the $233.4 million gain it posted in the prior year period. Second-quarter revenue from UHS' acute care services were up 9.7 percent year over year on a same facility basis, while revenue from its behavioral health services increased by 7.8 percent. Salaries, wages and benefits increased 4.7 percent year over year in the second quarter to $1.77 billion. Net income hit $171.3 million, up from $163.9 million during the second quarter of 2022.  

12. Sioux Falls, S.D.-based Sanford Health reported a $71.8 million operating gain for the six months ending June 30, up from the $24 million operating gain recorded in the first six months of 2022. Year over year for the six-month period, revenues increased 4.3 percent to $3.56 billion, while expenses rose 2.9 percent to $3.49 billion. In the first quarter, Sanford posted $33.7 million in operating income, up from $13 million in the first quarter of 2022. 

13. Sacramento, Calif.-based Sutter Health reported $29 million in second-quarter operating income, reversing the $51 million loss it posted in the second quarter of 2022. Net income for the period hit $265 million on revenues of $3.8 billion, compared with a net loss of $457 million on revenues of $3.5 billion for the same period last year.

14. Pittsburgh-based UPMC reported $15 million in operating income for the six months ended June 30, an 82 percent drop from the $82 million operating income posted during the same period in 2022. For the six-month period, revenue increased 10.6 percent year over year to $13.82 billion while expenses rose 11.2 percent to $13.8 billion. UPMC's operating income hit $100.4 million in the first quarter, up from $50.4 million in the prior year period. 

15. Indianapolis-based IU Health transformed a $21.3 million operating income in the second quarter of last year into $150.5 million for the same period of 2023. Revenues rose 9.2 percent to total $2.2 billion in the period while expenses rose 2.8 percent to $2 billion. Net income for the second quarter totaled $307.7 million compared with a net loss of $571 million in the same period of 2022.

16. Somerville, Mass.-based Mass General Brigham reported an operating income of $69.4 million in the quarter ending June 30, compared to a $120.2 operating loss in the same period in 2022. Net income totaled $437.5 million for the quarter, up from a $949 million loss in the same period last year.

17. Minneapolis-based Allina Health reported a $122.7 million loss in the second quarter, compared to a $48.9 million loss in the second quarter of 2022. Year over year for the quarter, revenue increased marginally to $1.2 billion while expenses rose to $1.4 billion. Allina's net loss for the period was $70 million, down from a $196.3 million net loss in the second quarter the prior year.

18. Toledo, Ohio-based ProMedica reported a $39.8 million operating loss in the second quarter, a slight improvement on the $61.7 million loss in the prior-year period but down from the $29.6 million operating gain it posted in the first quarter. In the second quarter, overall expenses increased 2.7 percent year over year to $797.3 million, but labor costs decreased 2.5 percent to $388.8 million. Total revenue for the quarter was $812.4 million, a 7.4 percent year-over-year increase. The 11-hospital system ended the second quarter with an $83.6 million net loss, down from $170.3 million during the same period in 2022. 

19. Tacoma, Wash.-based MultiCare Health reported a $145.9 million operating loss during the first six months of the year, a slight improvement on the $194.9 million loss during the same period last year. The system reported a $59.9 million operating loss in the first quarter, compared with a $117.4 million loss in the first quarter of 2022. 

20. Minneapolis-based Fairview Health Services posted a $41 million operating loss on $1.8 billion in revenue in the second quarter, down from a $95.2 million loss in the prior-year period. Total revenues — which includes investment income — exceeded expenses by $3.7 million, improving on a $166.5 million loss during the second quarter of 2022.

21. West Reading, Pa.-based Tower Health chopped its operating deficit  by more than $70 million to $141.9 million in fiscal year 2023 and aims to be back in the black in 2024. For the quarter ended June 30 — the fourth quarter of fiscal year 2023 — Tower posted a $14.5 million operating loss, an improvement on the $38 million operating loss it posted in the previous quarter. Total revenue increased 2.3 percent over the prior quarter, and the system had a -2.7 percent operating margin in comparison to a -7.2 percent margin in the third quarter of the fiscal year. 

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