New Hyde Park, N.Y.-based Northwell Health reported an operating income of $73 million in the first quarter of 2024, up from a $22.6 operating loss in the same quarter in 2023, according to its May 30 financial report.
Operating revenue increased 11.4% year over year to $4.5 billion for the three months ended March 31. Northwell said the growth was primarily attributable to increases in patient volume, payment rates, pharmacy sales and continued growth in the ambulatory and physician network. Additionally, the system received $142.3 million in COVID-19 relief funding (none was received in the same quarter last year). Revenue cycle initiatives also contributed to the revenue growth.
The system's operating expenses increased 9% year over year to $4.4 billion. Northwell said the increase was attributable to cost-of-living wage adjustments, the effect on inflation on supply and expense price trends and investments in four areas. Those areas were:
- Facilities and programs to enhance capacity and infrastructure
- Safety, quality and patient experience initiatives
- Ambulatory and physician network expansion
- IT, including investments in EHRs, digital health technology and telehealth services
The health system said expense reduction efforts included implementing productivity and efficiency efforts, program consolidation and supply chain initiatives (such as the continuous review of programs to improve standardization, distribution, utilization and contracting).
Northwell posted a net income of $359.4 million, up from $241.4 million in the same quarter last year.