SSM Health, a system based in St. Louis with nearly 40,000 employees, recorded a net loss of $471.1 million in the first quarter of 2020, according to recently released financial documents.
Seven things to know:
1. SSM Health saw its revenue hit $1.9 billion in the three months ended March 31, a decrease of 2 percent from the same period one year prior.
2. The health system saw its expenses rise to about $2 billion, an increase of $111.6 million, or 5.9 percent, from the same period one year prior. SSM Health said that the expense increases were driven by supply costs and compensation changes.
3. Excluding nonrecurring items, SSM Health recorded an operating loss of $78 million in the first quarter of 2020. This compares to an operating gain of $73 million in the same period in 2019.
4. The health system also recorded a nonoperating loss of $393.1 million in the first three months of the year, which compares to a nonoperating gain of $127.8 million in the same period last year.
5. Overall, SSM Health ended the quarter with a net loss of $471.1 million. In the same period in 2019, the system recorded a net income of $200.6 million.
6. To help offset some of the losses, which were largely attributed to the COVID-19 pandemic, SSM Health furloughed about 2,000 employees, froze executive compensation, held off on hiring for noncritical positions and cut non-labor expenses.
7. "The impact from COVID-19 could be material in light of lower volumes and revenue, incremental costs of care and potential for reduced collectability of receivables," SSM Health said. However, the system said that the full financial effect of the pandemic depends on several factors and cannot yet be determined.