New York City-based Montefiore Health System reported a $316.9 million net loss in 2021, compared to a $42.7 million loss in 2020, according to its financial report posted March 16.
The 10-hospital system reported an operating revenue of nearly $6.5 billion in 2021, a 0.4 percent decrease from 2020. The health system's net patient service revenue increased year over year, but its grants, contracts and other revenue decreased.
Montefiore's operating expenses increased by 3.8 percent for the 12 months ended Dec. 31, 2021, to $6.8 billion, compared to $6.6 billion in 2020. It experienced an increase in all expense categories, including salaries and wages and employee benefits.
The system reported an operating loss of $294 million in 2021, compared to a $14.7 million operating loss in 2020. Its operating margin was -4.5 percent.
The losses were due to challenges from the COVID-19 pandemic, the system said in a statement shared with Becker's.
"Costs for equipment, supplies and labor continue to rise, and coming out of the second year of COVID, our patient volumes remain below their pre-pandemic levels. This is compounded by no increases to reimbursement rates for most of our patients, an issue at play long before COVID."
Montefiore said it created a financial improvement program to address the losses, with the goal to reach $500 million in savings this year.