Salt Lake City-based Intermountain Health posted $184 million in operating income during the first six months of 2023, a 35 percent drop from the $285 million it reported during the same period last year, according to financial documents published Aug. 29.
Revenue for the six-month period increased 21.8 percent year over year to $7.9 billion.
Expenses for the period rose 24.4 percent year over year to $7.4 billion, including a 27.9 percent rise in labor costs to $3.4 billion.
Intermountain merged with Broomfield, Colo.-based SCL Health in April 2022, adding a net $4.2 billion of assets for the year. In the first quarter of 2023, the system reported a $104 million operating income on revenues of $4 billion, compared with a $130 million operating gain on revenues of $2.8 billion for the same period in 2022.
After factoring in nonoperating items, the 33-hospital system ended the first six months of 2023 with a $1.1 billion net gain, compared with a $2.7 overall gain in the prior-year period.
The system ended the first half of the year with $795 million in cash and equivalents, up from $701 million during the first six months of 2022.
This year "continues to be a challenging financial year for Intermountain Health and the entire healthcare industry," but the system remains committed to serving its communities with high-quality and affordable care, a spokesperson for Intermountain told Becker's.