Greenville, S.C.-based Prisma Health transformed a $67.6 million operating loss (-1.2% margin) in fiscal year 2022 into a $67.1 million gain (1.1% margin) in FY 2023, according to financial documents published Dec. 8.
Revenue increased 5.8% year over year to $6 billion and was primarily attributed to increased patient volumes, pharmacy sales and payer rates, income from quality achievement and shared savings programs and income from the health access, workforce and quality program.
Expenses rose 3.4% year over year as the health system continues to be affected by the increased cost of supplies and other expenses due to inflation. Although labor costs increased in FY 2023, Prisma said the spike was mitigated by decreased length of stay and reduced contract labor.
Nonoperating activities had a gain of $201.3 million for the year ended Sept. 30, compared to a loss of $350.8 million the previous year. The increase in nonoperating activities is primarily due to higher returns in the investment market.
The unrestricted portion of cash and investments was $1.97 billion at Sept. 30, 2023, and $1.88 billion at Sept. 30, 2022, representing 125 and 123 days of cash on hand, respectively.
Prisma reported a net gain of $268.3 million compared to the prior year loss of $418.4 million, resulting in an excess margin of 4.3% and -7.8%, respectively.