New York City-based Mount Sinai posted an operating income of $11.6 million in the first quarter of 2024, down from an operating income of $45.3 million over the same period last year, according to its May 30 financial report.
The health system saw total operating revenues of $1 billion in the three months ended March 31, up from $981 million posted over the same period in 2023. Net patient revenue increased 12% year over year.
Other revenue was $56.7 million, down from $82.8 million posted over the same period last year. Mount Sinai said the decline was due to a decrease in 340B pharmacy revenue. Other revenue also includes ancillary services, such as the cafeteria, parking lot and rental properties.
Operating expenses totaled $1 billion in the quarter, up from $935 million posted in the same period last year. Salaries and wages were $400 million, up from $370 million. Supplies and other expenses were $460 million, up from $409 million. Supply expense increases were attributed to overall inflation in healthcare supplies as well as inpatient volume growth and outpatient growth in higher-cost areas.
Mount Sinai posted a net income of $9.3 million in the quarter, up from a $20.2 million net loss in the same quarter last year.
The health system recently submitted a revised plan to close Beth Israel Hospital on July 12. The revised plan comes after the state health department informed Mount Sinai that its plan submitted in October was incomplete and asked for a new, comprehensive plan. Mount Sinai said in its financial report that the planned closure "comes as a consequence of decreasing patient census, outdated infrastructure, the ongoing shift of patients from the inpatient to outpatient setting and a sharp increase in labor and supply costs, all of which have led to significant operating losses" at the campus.
Mount Sinai is facing a lawsuit over the planned closure. The system said in the report that although its management believes it will "ultimately be successful in being permitted to close this facility, the outcome of any litigation is uncertain."