Honolulu-based Kuakini Health System, which has suffered operating losses and negative cash flows in recent years, improved its performance in 2022 and can continue to operate as a going concern, the group's auditors and management said in a report.
While the group again reported a loss for fiscal year 2022, which ended June 30, operating revenue was slightly up at $156.1 million while operating expenses dipped. Overall, Kuakini reported an operating loss of $10.45 million compared with the previous year's loss of $22.2 million.
When investment and other non-operating income was factored in, the group reported a net loss of $8.7 million compared with $15 million in 2021.
Kuakini was downgraded by S&P in 2021 from "B-" to "CCC" because of "rapid earnings and cash deterioration," which decreased its cash on hand to 23 days.