Greenville, S.C.-based Prisma Health, an 18-hospital system, reported an operating income of $217 million (4.4% margin) for the nine months ended June 30, compared to an operating loss of $31.2 million (-0.7% margin) for the same period in the previous fiscal year, according to financial documents published Aug. 16.
Revenue for the nine-month period increased 13.1% year over year to $4.96 billion while expenses grew by 7.4% to $4.74 billion.
Overall labor costs increased 3.1% year over year to $2.67 billion, but were mitigated by decreased length of stay and reduced contract labor, according to the health system.
After accounting for nonoperating items, such as investment returns, Prisma ended the nine-month period with a net income of $455 million, compared to a net gain of $201 million in the prior year-period.
The unrestricted portion of cash and investments was $2.65 billion at June 30, 2024 and $1.97 billion at September 30, 2023, representing 158 and 125 days cash on hand, respectively.
In July, Prisma announced plans to acquire Blount Memorial Hospital, a 304-bed community hospital in Maryville, Tenn. Under the proposed deal, Prisma would commit to investing $364 million into Blount Memorial.
The deal, which is expected to close in late 2024, would cement Prisma's expansion into the Tennessee hospital market.