New York City-based Montefiore Health System reported $147.4 million in operating income (2.3% margin) for the nine months ending Sept. 30, a significant turnaround from the $28.6 million loss (-0.5% margin) reported during the same period last year.
The increase in operating income was primarily attributed to FEMA reimbursements for COVID-related expenditures incurred during the pandemic, as well as funding from the 1115 Medicaid Waiver, according to the health system. Without these funds, Montefiore Health System's operating margin would have been -3.6%.
Revenue for the nine-month period increased 14.7% year over year to $6.4 billion while expenses grew by 11.5% to $6.3 billion, according to financial documents published Dec. 2. Salaries and wages increased 11.5% to $2.9 billion and employee benefits rose 14.7% to $864.6 million.
After factoring in nonoperating items, such as investment returns, Montefiore Health reported $208.9 million in net income for the nine-month period, compared to $33.4 million for the prior-year period. As of Sept. 30, long-term debt for the system was $1.9 billion.
"Rising expenses in labor, pharmaceuticals and medical devices continue to impact our health system and hospitals nationwide, and Medicaid reimbursements covering less than 100% of care costs remain a persistent challenge," the health system said in a statement. "We remain committed to identifying cost-saving opportunities where appropriate and will continue to collaborate with elected leaders at all government levels to advocate for hospitals like ours, helping to reduce healthcare disparities and secure the investments needed to ensure lasting access to high-quality care."
In the second quarter, Colleen Blye stepped into the role of executive vice president, CFO and chief business officer of Montefiore Health System. She had served as executive vice president and CFO of the health system since 2016.