Greenville, S.C.-based Prisma Health reported an operating income of $311.3 million (4.9% operating margin) in fiscal 2024, up from an operating income of $67.1 million (1.6% margin) in fiscal 2023.
Prisma Executive Vice President and CFO Matt Elsey told Becker's that the health system's "significantly improved" operating results for the year ended Sept. 30 were the "direct result of strategic and operational initiatives implemented by our highly engaged team members."
Mr. Elsey said that at the beginning of fiscal 2023, Prisma deployed its own clinical operating system across the enterprise, which has led to "substantial and sustained gains in the domains of patient experience, clinical outcomes, patient safety and operational efficiencies."
"Prisma is also benefiting from the significant investments it has made in clinical technologies and IT systems," he said. "We have upgraded or replaced most of our diagnostic and therapeutic technologies which has improved team member and patient experience and throughput. We are also an Epic Gold Stars Level 10 organization, which recognizes our maximization of EHR functionality which streamlines operations and empowers patients in their interactions with our healthcare team.
He said Prisma has also focused on expanding access for its patients, which includes increasing appointment availability for specialty and primary care practices and an expansion of urgent care centers close to where people live and work.
"Prisma has also placed a strong emphasis on financial and operations improvement initiatives that have resulted in improved productivity, improved revenue cycle performance, reduced usage of contract labor and improved length of stay," Mr. Elsey said.
Mr. Elsey also said that fiscal 2024 marked the first full year Prisma received benefits from South Carolina's direct payment program, which provides additional reimbursement for the services administered to Medicaid beneficiaries. Prisma also received a non-recurring lump sum 340B settlement payment.
Prisma recorded revenues of $6.4 billion in 2024, up 10.7% year over year. The system reported total expenses of $6.1 billion, up 6.5% year over year. The system posted a net income of $646.9 million, up from $268.3 million in 2023.