Northwestern Memorial HealthCare records $63M operating loss in Q3

Chicago-based Northwestern Memorial HealthCare saw revenue decline in the three months ended May 31 and closed out the quarter with a loss, according to unaudited financial documents released July 15. 

The health system reported revenue of nearly $1.4 billion in the third quarter of this year, down from $1.5 billion in the same period a year earlier. The decline was attributed to a 23.6 percent decline in patient service revenue. 

After factoring in expenses, which declined 2.3 percent year over year, Northwestern Memorial HealthCare ended the third quarter with an operating loss of $63.2 million. In the same period of 2019, it reported operating income of $51.3 million. 

The health system posted a net loss of $284.9 million in the three months ended May 31, compared to a net loss of $897,000 a year earlier. 

To help offset losses tied to the COVID-19 pandemic, the health system applied for and received Medicare advanced payments of about $412 million, including $353 million received in the third quarter. It will start repaying the funds in August. 

Northwestern Memorial HealthCare also received $187 million in COVID-19 relief grants, which do not have to be repaid. About $161 million in grants was received in the third quarter, the health system said. 

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