Hershey, Pa.-based Penn State Health saw a financial loss of $160 million on revenues of $3.8 billion in fiscal year 2023, which ended June 30, the five-hospital system announced in a recent press release.
The system cited loss factors like increased costs to recruit and retain staff, higher supply chain costs due to inflation, new IT systems implementation and anticipated growth investment expenses, including $28 million in debt service to build two new hospitals: Hampden Medical Center and Lancaster Medical Center.
The news comes on the heels of a reported $125.6 million loss in the period which ended March 31 on revenue of $2.8 billion.
Not all doom and gloom, Penn State Health saw improvements in the first quarter of fiscal 2024 revenue, with a reported 13.5% increase in net patient service revenue and $917.6 million in revenue higher than the amount budgeted for the same quarter last year.
"I'm pleased to see the financial performance of Penn State Health steadily improving amid this challenging climate for healthcare," CEO of Penn State Health Steve Massini said in the release. "We remain diligent in our efforts to be fiscally responsible yet responsive to the evolving needs of the communities we are privileged to serve."