Peoria, Ill.-based OSF HealthCare reported an operating income of $1.2 million (0% margin) in its fiscal year 2023, which ended Sept. 30, compared with a $115 million operating loss (-3%) in FY 2022.
Operating performance improved quarter over quarter during the fiscal year, with margin repair initiatives continuing to strengthen financial results, according to financial documents published Nov. 17. Operating income in the standalone third quarter was $48.2 million.
Revenue was $4.1 billion in FY 2023, up by $269.4 million or 7.1% over the prior year. Demand for services continues to be high — particularly in the outpatient setting, according to the 15-hospital system.
Expenses for the year were $4.1 billion, increasing by $153.3 million or 3.9% over FY 2022. Significant expense drivers included higher internal labor costs, contracted physician fees and supplies. A reduction in agency costs by about $100M offset the increases.
After factoring in nonoperating items, OSF reported $323.8 million in net income, compared with a loss of $426.7 million in FY 2022.
"We're not quite back to pre-COVID-19 levels, but we're a lot closer to that on our cost structure," OSF CFO Michael Allen told Becker's in September. "While we were able to get travel costs down, we've added other labor costs and the cost of doing business overall has gone up. Revenues did not go up at the same pace, so 2022 was rough. In 2023, we are in repair mode and going into 2024, we will continue that work."