Newly created Greensburg, Pa.-based Independence Health System is off to a shaky financial start, the Pittsburgh Post-Gazette reported Nov. 29.
In a Nov. 7 conference call with bondholders, the system, which was created when Excela Health and Butler Health System merged Jan. 1, saw combined operating losses of $22.7 million on operating revenue of $261.8 million for the three months ending Sept. 30. These losses are close to the operating loss predictions for the fiscal year ending June 30, 2024, the publication reports.
Butler reported $13.5 million in operating losses for 2022, $40.7 million for 2023, and $13.1 million in the first quarter of 2024.
Excela Health saw $9.7 million in operating losses for the three months ending Sept. 30, up from $2 million in losses last year. Operating as subsidiaries of Independent Health, the two systems are reporting their financial results separately for bond reporting requirements.
During the conference call, Independence Health President and CEO Ken DeFurio pointed to rising Medicare-age patient populations and a commercial health insurance patient coverage decline for the system's financial woes.
Editors note: This report was updated Dec.12 to reflect new data provided by Butler Health.