How Tallahassee Memorial steered its operating performance back into the black

Tallahassee (Fla.) Memorial HealthCare saw  an operating loss of $30.4 million (-3.2% margin) in fiscal 2023 swing to an operating income of $13.9 million (1.3% margin) in fiscal 2024, according to its Nov. 26 financial report. 

CFO Priscilla Needham told Becker's that the system "achieved significant financial improvement by implementing a comprehensive strategy focused on operational efficiency and strategic investment."

"By addressing key cost drivers such as labor and supply expenses, streamlining our capital project priorities and partnering with [Ensemble HealthCare Partners] to enhance our revenue cycle management, we have strengthened our financial foundation while maintaining our commitment to exceptional patient care," Ms. Needham said. 

Tallahassee Memorial reported total operating revenue of $1.07 billion in the fiscal year ended Sept. 30 a 12.4% increase from fiscal 2023. Net patient service revenue reached $1.01 billion, up 1% year over year. 

The system reported total operating expenses of $1.06 billion in fiscal 2024, up 7.5% year over year. Salaries, wages and benefit costs totaled $475.78 million, up 3.1% year over year. Supplies and other expenses totaled $386.42 million, up 4.9% year over year.

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