Greensboro, N.C.-based Cone Health reported a nine-month operating income of $15.2 million (0.7% margin) up from $11.5 million (0.6% margin) posted over the same period in 2023, according to its Aug. 23 financial report.
Through the third quarter of 2024, Cone reported total operating revenues of $2.17 billion, up 7.88% over the same period in 2023. Net patient service revenues increased 7.2% to $1.9 billion and premium revenues increased 16% to $168.3 million.
Total operating expenses were $2.16 billion for the nine months ended June 30, up 7.74%over the same period last year. Salaries and wages increased 2.6% to $758.2 million. Purchased personnel jumped 25.1% to $68.6 million.
Days cash on hand was 195 as of June 30, 2024, up from 178 on June 30, 2023.
"The system continued to experience industry‐wide financial challenges in the third quarter, particularly related to labor market dynamics, overall expense inflation and payer denials," Cone said in the report.
Cone said additional performance drivers included high average length of stay for inpatients and losses in its Triad Healthcare Network and Health Team Advantage insurance business, which were driven by high medical claim costs.
The health system posted a bottom-line gain of $163.2 million through the first three quarters of 2024, up 53.68% over the same period last year.
On June 24, Risant Health, a nonprofit formed under Oakland, Calif.-based Kaiser Permanente, signed a definitive agreement to acquire Cone. If the transaction closes, Cone Health will operate independently as a regional and community-based health system under Risant, which supports organizations with technology and services to improve outcomes and lower care costs in diverse business models.