New Hyde Park, N.Y.-based Northwell Health reported an operating income of $77.5 million (1.7% margin) in the third quarter of 2024, up from an operating loss of $11.6 million (-0.3% margin) during the same period last year, according to its Nov. 27 financial report.
Northwell recorded total operating revenue of $4.6 billion for the three months ended Sept. 30, up 10.7% over the same period last year. Net patient service revenue increased 9% year over year to $3.2 billion. Physician practice revenue increased 9.4% year over year to $880.4 million.
The system recorded total operating expenses of $4.5 billion in the third quarter, up 8.5% year over year. Salaries and benefit costs increased 7.5% year over year to $2.9 billion. Supply costs increased 10.6% year over year to $1.4 billion.
Northwell reported a net income of $333.2 million in the third quarter of 2024, up from a net loss of $157.1 million over the same period last year.
For the nine months ended Sept. 30, Northwell reported an operating income of $227.2 (1.7% operating margin), up from an operating income of $135 million (1.1% margin) during the same period in 2023. Through the first three quarters of 2024, Northwell reported a net income of $813.3 million, up from a net income of $449.2 during the same period last year.
Northwell said its operating results through the third quarter shows strategic growth and benefits from COVID-19 relief funding, but inflation, staffing issues and payer challenges have negatively affected operating margins. The system said it is focused on improving operations through several initiatives, including enhancing patient access, creating new revenue opportunities, physician recruitment and continued revenue cycle initiatives.
"Additionally, there is continued focus on expense reduction through operational efficiency efforts, program consolidation and supply chain initiatives," Northwell said in the report.