Attleboro, Mass.-based Sturdy Health saw a $17.2 million total net gain for the 2023 fiscal year ending Sept. 30.
The 26-location, integrated health system's financial results are a mix of $41 million in non-operating gains and strong investments, along with strategic financial recovery efforts which saw $9.9 million in fiscal year 2023 savings, according to a Sturdy Health Dec. 18 press release shared with Becker's.
"The financial headwinds for health systems were strong in 2023," Amy Pfeffer, CFO of Sturdy Health, said in the release. "We all worked diligently to recover from the devastating impacts of the pandemic, including higher expenses, high contract labor costs, and longer patient length of stays due to throughput challenge."
However, due to continued operational challenges, Sturdy saw $16 million in uncompensated care, a 33% increase from the same time period last year, $8 million in contract labor costs, supply and pharmaceutical cost increases, and $24.7 million in operating loss.
Despite the ups and downs the health system has faced, their service demands remained strong with a 5% increase in emergency department visits, 12% increase in surgeries, and 3% for primary and specialty care visits, the release reported.
Looking to 2024, the health system plans to focus on employee retention, contract labor reductions, and throughput improvements to ensure appropriate lengths of stay. A $50 million cancer and specialty care medical officer building is also in the works to improve operating efficiencies and care access.