Trinity cuts contract labor by 25%, revenue grows to $23.9B: 6 things to know

Livonia, Mich.-based Trinity Health reported a $68.4 million operating income (0.3% margin) in the fiscal year ending June 30, compared to a $288 million operating loss (-1.3% margin) in the previous fiscal year, according to financial results published Oct. 4. 

Six things to know:

1. The 101-hospital, nonprofit system saw operating revenue increase 10.5% year over year to $23.86 billion while expenses grew by 8.8% to $23.79 billion. 

2. On a same facility basis, salaries and wages rose $558.2 million (6.2%) in fiscal 2024 as the health system continues to implement initiatives to address industry wide staffing shortages and wage inflation. On a same facility basis, contract labor costs decreased $81.4 million (25.5%).

3. Trinity continues to use strong cost controls over contract labor and other operational spending. Labor stabilization initiatives include its FirstChoice internal staffing agency and the TogetherTeam virtual connected care model. TogetherTeam is being implemented systemwide and is currently active in 24 hospitals and 62 nursing units, with more sites to go live in fiscal 2025. 

4. Net income for fiscal 2024 was $475.5 million, down from $959.7 million in fiscal 2023. 

5. Total assets were $33.2 billion and net assets were $18.9 billion. 

6. Unrestricted cash and investments were $14.9 billion in fiscal 2024; days cash on hand was 238 days compared to 178 days for the year ending June 30, 2023. 

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