Peoria, Ill.-based OSF HealthCare transformed a $43.2 million operating loss (-4.5% margin) in the fiscal first quarter ending Dec. 31, 2022, into a $0.9 million operating gain (0.1% margin) in the same quarter in 2023. The turnaround is a 4.6% improvement on its operating margin year over year.
First-quarter revenue increased 13.3% year over year to $1.1 billion, according to financial documents published Feb. 26. Demand for services was high, particularly in the outpatient setting, compared to the prior year.
First-quarter expenses rose 8.4% year over year to $1.1 billion. Key contributors to the rise in costs were internal labor expenses, physician fees and supply costs.
After accounting for nonoperating items, such as investment returns, OSF reported a net profit of $179.8 million in the fiscal first quarter of 2023, up from an $81.8 million gain in the prior-year period.