Columbia, Md.-based MedStar Health recorded a net loss of $246.8 million in the three months ended March 31, driven primarily by investment losses, according to recently released financial results.
MedStar posted operating revenues of $1.5 billion in the third quarter of fiscal year 2020, an increase from the $1.4 billion in revenue posted in the same period one year prior.
The health system saw expenses rise in the quarter to $1.4 billion, up about 4 percent from the same quarter in fiscal 2019.
MedStar recorded operating income of $32.2 million in the third quarter of fiscal 2020. This compares to an operating income of $41.4 million in the same quarter of fiscal 2019.
In the quarter, MedStar posted a $274.9 million investment loss, driven by the unstable markets amid the COVID-19 pandemic.
After factoring in other nonoperating losses and a tax income benefit, the system posted a net loss of $246.8 million in the quarter ended March 31. In the same period last year, the system recorded a net income of $172 million.
MedStar said that the COVID-19 pandemic resulted in lower patient volume and reduced revenue in the third quarter, and it expects a "significant negative impact on revenues and operating results in the fourth quarter of fiscal year 2020."