Geisinger Health reports $842M loss as investments slump

Danville, Pa.-based Geisinger Health System reported an $842 million loss in 2022 as its investment portfolio suffered a sharp decline in value.

While the eight-hospital system reported a net gain in 2021 of $472.3 million in its financing and investing activities, it saw a steep drop in 2022 to a loss of $602.7 million. In addition, increased expenses totaling $7.1 billion further dragged down financial performance as the system recorded an operating loss of almost $239 million.

The health system, which also operates over 100 specialty clinics and primary care facilities, suffered a Moody's rating downgrade Feb 7 because of continued weak cash flow, with warnings of possible future downgrades. Management said on the release of results it was taking a number of initiatives to improve the balance sheet.

"Geisinger continues to plan for financial performance that will, for decades to come, support our charitable healthcare mission," management said in the financial report.

Geisinger serves a patient base of approximately 1.7 million people across Pennsylvania, mainly in the central and northeastern part of the state. Its total bed capacity is 1,325.

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