Sentara Healthcare, a 12-hospital system based in Norfolk, Va., saw operating revenues increase year over year in the first half of 2020 but ended the period with a net loss, according to recently released financial documents.
The health system reported revenues of $3.9 billion in the six months ended June 30, up 16.2 percent from a year earlier. The boost was attributed to an increase in premium and capitation revenue, which was driven by year-over-year growth in health plan membership. That growth was partially offset by a 9.2 percent decrease in net patient service revenue.
Operating expenses increased 20 percent year over year in the first six months of 2020. The increase was attributed to higher medical claims expense and costs tied to the COVID-19 pandemic, the health system said.
Sentara Healthcare ended the first two quarters of this year with operating income of $159.4 million, down from $230.5 million in the same period last year. After factoring in nonoperating items, the health system reported a net loss of $38.7 million for the first half of this year, compared to net income of $569.4 million in the same period of 2019.
More articles on healthcare finance:
Steward, medical billing company accused of illegal 'revenue enhancement' scheme
CMS unveils new payment model for rural hospitals: 10 things to know
18 latest hospital closures, state by state