Waukesha, Wis.-based ProHealth Care, which earlier this year opened its fourth hospital, reported a net loss of almost $100 million for fiscal year 2022 as it struggled with both labor costs and what it called "volatile investment markets."
While the hospital group reported higher revenues totaling $968.5 million for the fiscal year ending Sept. 30, its expenses increased almost 9 percent to $929.8 million compared with $856 million in the same period 2021.
Staffing agency expenses were $29.9 million higher than the prior year, and contracted services were up $13.1 million, or 9.9 percent, largely due to elevated locum usage to meet volume demands in such areas as pulmonary, neuroscience and cardiology, ProHealth said.
"As with other healthcare providers locally and nationally, staffing continues to be a concern given widespread labor shortages, the number of vacant roles and the use of premium pay, including agency staff, to meet patient demand," the group said.
In addition, the group's financial challenges were heightened by difficulties in its investment arm, where it experienced net losses of $168.9 million for the period compared with a net gain of $89.2 million in 2021. Overall, ProHealth reported a net loss of $99.85 million for 2022 compared with a net gain of $241.1 million last year.