Philadelphia-based Temple University Health System saw its operating performance move back into the black in fiscal 2024.
The system posted an operating income of $1.1 million (0% operating margin) in 2024, up from a $58.8 million operating loss (-2.3% operating margin) in 2023.
Executive Vice President and CFO Gerald Oetzel told Becker's that the health system saw its revenues grow by 11% in 2024, while containing expenses to a 7% increase, "generating significant improvements in EBIDA and operating income."
He said acute inpatient and outpatient volumes grew by a "healthy 5% and 6.5%, respectively, with a focus on selected services and expanding the physician network." He also said that all of the system's operating entities experienced year-over-year growth.
"In addition, management has resolved many of the go-live revenue cycle issues experienced in the prior year," Mr. Oetzel said.
On the expense side, Mr. Oetzel said that management's operational improvement plan has yielded productivity gains of 2.1% and added that Temple Health's acute care hospitals are consistently ranked in the top quartile in cost efficiency.
"In the upcoming year, management will continue to focus on operating efficiencies and employee satisfaction partially through the strategic use of technology, including optimizing the Epic EHR," he said. "Of course, growth is part of our plans with the opening of a new Women's Hospital and through expansion of the Lewis Katz School of Medicine at Temple University across the region."