Several health systems recently reported financial results for the third quarter and first nine months of the year, with many seeing higher expenses eat into revenue gains.
Here are 23 health systems that recently released financial results:
1. Chicago-based CommonSpirit Health posted $23 million income for the three months ending Sept. 30, down from $34 million over the same period in 2021. However, CommonSpirit received $325 million as part of the California provider fee program under the CMS-approved state plan amendment; after normalizing for the program, the 140-hospital system reported a $227 million loss for the quarter. CommonSpirit's quarterly operating revenue hit $8.53 billion. Salaries and benefits expenses increased 5.1 percent to $4.5 billion for the quarter due to high registry and contract labor as well as overtime, premium pay and inflation.
2. Nashville, Tenn.-based HCA Healthcare saw revenues of $14.97 billion in the third quarter, down from $15.28 billion year over year. The 182-hospital system saw a net income of $1.13 billion in the quarter, down from $2.27 billion for the same period last year. For the nine months ended Sept. 30, HCA's net income was $3.56 billion on $44.74 billion in revenues. That is compared to a net income of $5.14 billion on $43.69 billion in revenues over the same period last year. Results for the first nine months of 2022 included losses of $25 million on the sales of facilities, whereas results for the same period in 2021 included gains on facility sales of $1.1 billion.
3. Dallas-based Tenet Healthcare reported a net income of $131 million in the third quarter, down from $448 million year over year. Third-quarter operating revenue dipped to $4.8 billion from $4.9 billion the prior year. The 60-hospital system ended the third quarter with an operating income of $596 million, down from $1 billion over the same period in 2021. For the nine months ending Sept. 30, Tenet posted a net income of $308 million on revenues of $14.2 billion. In the same period in 2021, it reported a net income of $665 million on revenues of $14.6 billion.
4. King of Prussia, Pa.-based Universal Health Services posted third-quarter net income of $182.8 million compared with $218.4 million in the same period last year. The decrease in net income came even as revenues were up almost 6 percent in the quarter to total $3.34 billion. Net income for the nine months ending Sept. 30 was $500 million, down from $752.5 million for the same period in 2021. Revenues for the nine months in 2022 were up on the same period last year, totaling $9.95 billion versus $9.4 billion.
5. Cleveland Clinic reported $469.2 million in third quarter net losses, a significant drop from $422.2 million net income for the same period last year. For the nine month's end, Cleveland Clinic reported $1.5 billion net loss compared to nearly $1.7 billion for the same period in 2021. The 20-hospital system reported a -3.3 percent operating margin with $316.3 million operating loss for the nine month's end as operating expenses were up 14.5 percent. Salaries, wages and benefits were up 16.3 percent to $802.5 million for the first three quarters of the year due to more overtime, premium pay and agency costs.
6. Franklin, Tenn.-based Community Health Systems posted a net loss of $42 million for the third quarter, weighed against a net income of $111 million in the same period in 2021. Third-quarter operating revenue dipped 2.9 percent to $3.03 billion while operating expenses increased 1.7 percent to $2.8 billion. The 81-hospital system also reported a net loss of $369 million for the nine months ending Sept. 30 compared with net income of $52 million for the same period last year.
7. Pittsburgh-based UPMC reported revenue of $18.9 billion in the first nine months of the year, up from $18.3 billion in the same period of 2021, with its operating margin dropping from 4.4 percent to 1 percent year over year. The 40-hospital system reported operating expenses of $18.7 billion in the first nine months of the year, up from $17.5 billion a year earlier. UPMC ended the nine-month period with an operating income of $196 million, down from $800 million the prior year, and posted a net loss of $1.1 billion compared to net income of $1.2 billion in the same period of 2021.
8. Oakland, Calif.-based Kaiser Permanente, which provides healthcare and health plans, reported a net loss of $1.5 billion in the third quarter, down from a gain of $1.6 billion for the same period the prior year. The company posted total operating revenues of $24.3 billion and total operating expenses of $24.3 billion in the third quarter, down from $23.2 billion and $23.1 billion respectively for the same period in 2021. Third-quarter operating loss was $75 million, down from a gain of $38 million in the third quarter of 2021.
9. Rochester, Minn.-based Mayo Clinic reported net operating income of $157 million on $4.12 billion for the third quarter. The system's operating margin at the quarter's end was 3.8 percent. Operating expenses hit nearly $4 billion for the quarter, a 7.1 percent year-over-year increase. Salaries and benefits were up 3.5 percent to $2.3 billion. For the nine months ending Sept. 30, the 16-hospital system reported operating expenses were up 9.5 percent to $11.6 billion. Contract labor expenditures were up 47 percent in the third quarter and 75 percent for 2022 overall.
10. Milwaukee and Downers Grove, Ill.-based Advocate Aurora Health reported a $310.8 million loss for the third quarter and a $911.6 million loss for the nine months ending Sept. 30. The results are in stark contrast to the $1.5 billion recorded for the nine months ending figure in 2021. Salaries, wages and benefits hit $2.1 billion for the quarter and are at $6.3 billion for the year. Supply, purchased services and other expenses reached $1.2 billion for the third quarter and are at $3.5 billion for the year.
11. Renton, Wash. Providence, a 51-hospital system, ended the first nine months of 2022 with an operating loss of $1.1 billion. For the nine months ending Sept. 30, Providence's operating revenues were $19.6 billion on a pro forma basis, up from $18.8 billion during the same period last year. Operating expenses for the period were $20.7 billion, a 7 percent year-over-year increase. This includes a 9 percent increase in salary and benefits due to the cost of agency staff, overtime and wage increases, and a 6 percent increase in supply costs, driven by an 8 percent increase in pharmaceutical spending.
12. Allentown, Pa.-based Lehigh Valley Health Network, a 13-hospital system, reported a net loss of $23.6 million for the fiscal year ending June 30, 2022, amid higher labor costs and losses on investments. That figure compared with a net gain of $402 million in 2021. The health system, which opened three hospitals during the year, reported higher patient revenue of $3.7 billion compared with 2021, but its expenses totaled $3.75 billion, 14 percent higher than last year.
13. St. Louis-based SSM Health, which operates 23 hospitals, revealed losses totaling over $484 million for the nine months ending Sept. 30. That figure compares with a net income of $447.5 million for the same period last year. The system also reported third-quarter losses of $93.3 million versus a gain last year of $75.6 million. Total debt for the health system as of Sept. 30 increased $98.1 million from Dec. 31, 2021, to total $2.6 billion.
14. Salt Lake City-based Intermountain Healthcare reported net income increased 1 percent year over year to $2.2 billion for the nine months ending Sept. 30, down from $2.7 billion at the six months ending June 30. Revenue for the 33-hospital system hit $10.2 billion, up from nearly $8 billion over the same period last year. Employee compensation and benefits were $4.3 billion, up from nearly $3 billion year over year. Expenses overall increased from nearly $7 billion for the first nine months of 2021 to $9.5 billion for 2022.
15. West Des Moines, Iowa-based UnityPoint Health reported a third-quarter net loss of $147.9 on revenue of $1.2 billion. The 39-hospital system reported $67.2 million operating loss for the quarter, down from $52,866 in operating income over the same period in 2021. UnityPoint spent $489 million on salary and wages for the third quarter, up 15 percent year over year.
16. Cedars-Sinai, which operates five hospitals in the greater Los Angeles area, recorded a net loss of $41 million in the third quarter amid increased expenses from labor and supply costs as well as investment losses. The $41 million deficit was despite improved third-quarter revenues of $1.78 billion compared to $1.63 billion in the same period last year. Salary costs rose 14 percent to $830 million for the quarter compared to the same period in 2021, and materials and supply costs rose almost 10 percent to $676 million. Investment losses contributed to quarterly performance with a net loss totaling $75 million related to future capital and operating needs.
17. Cleveland-based MetroHealth reported a $5.1 million operating loss for the third quarter, compared to $24.3 million income for the third quarter of 2021. Third-quarter salary and wages hit $191.4 million, up from $175.2 million in the third quarter of 2021. Employee benefits were also up slightly to $24.1 million. Operating revenue hit $387.3 million for the third quarter and $1.15 billion for the nine months ending Sept. 30.
18. NYC Health + Hospitals ended the third quarter with an operating loss of $122.8 million, compared with an operating income of $58.3 million for the same period in 2021. The 11-hospital system posted third-quarter operating revenues of $3.2 billion, down 5.1 percent from revenues of $3.4 billion in the same period in 2021. Third-quarter operating expenses increased marginally to $3.4 billion year over year. Within its expenses, affiliation contracted services was $384 million, an 11.2 percent increase compared to the same period last year.
19. Aurora-based University of Colorado Health, which operates 12 hospitals, posted losses of $157.5 million in the third quarter. While UCHealth revealed a net positive operating income of $65.5 million, the over $200 million loss in investment value dragged down its financial performance for the first three months of fiscal year 2023. Operating income was down from the same period last year when it totaled $145.8 million, pushing overall income then to a positive $125.8 million backed up by positive returns on investment.
20. New York City-based Mount Sinai Health System posted a net loss of $241 million for the nine months ending Sept. 30 even as its operating income was positive. While the six-hospital system revealed an excess of operating revenue over expenses of $163 million, investment losses and a transfer to affiliate the Icahn School of Medicine at Mount Sinai resulted in the overall loss, down from a $259.1 million gain in the same period last year. For the nine months ending Sept. 30, total expenses rose 8.8 percent to $2.6 billion — within which salaries and wages increased 8.3 percent to $985 million — and total operating revenue increased 7.2 percent to $2.8 billion.
21. Montefiore Health System, a 10-hospital in the New York City area, reported a net loss of $259.3 million for the nine months ending Sept. 30, building on a $189.4 million loss for the same period in 2021. Revenues for the same period totaled $5.17 billion with expenses at $5.31 billion. The system also reported heavy losses on investment income — a loss of $131.9 million for the nine months ended Sept. 30 compared with a $39.5 million gain in 2021.
22. Phoenix-based Banner Health reported a $26 million operating loss for the third quarter ending Sept. 30, bringing the health system's total loss to $113 million. Banner reported a 7 percent increase in external contract labor year over year for the nine-month's end. Banner's insurance division reported a 12.6 percent spike in premium revenue for the first three quarters of the year when compared to the same period in 2021. Insurance premiums represent 24 percent of the system's operating revenue. Banner | Aetna, the system's joint venture with Aetna, reported $7 million operating gain year to date and its full risk membership increased 12.1 percent.
23. Columbia, Md.-based MedStar Health reported a net loss of about $200M in fiscal year 2022, as the 10-hospital system faced a "volatile" investment market, and warned that things are unlikely to change in the near future, according to recent financial documents. While realized investment was positive with a net gain of $38.3 million in the year ending June 30, MedStar reported unrealized losses on investment totaling $330.3 million compared with a gain in 2021 of $453.8 million.