Livonia, Mich.-based Trinity Health reported a slight revenue increase in the first quarter of the 2023 fiscal year ending Sept. 30 to $5 billion after the health system finalized its acquisition of the remaining stake in MercyOne from CommonSpirit Health.
The acquisition closed on Sept. 1 and added $126.2 million operating revenue to the quarter. Excluding revenue from Des Moines, Iowa-based MercyOne, Trinity's revenue dropped $89.9 million compared to the same period last year. The health system reported $550.9 million net loss for the quarter, compared to $398.4 million net income in the same period last year.
Trinity reported patient volumes dropped 2.5 percent for the quarter, and the volumes were affected by staffing challenges. However, patient volumes are stabilizing, Trinity reported, and the health system is preparing for inpatient volumes to remain below pre-pandemic levels.
"The majority of the corporation's revenue is comprised of outpatient and other nonpatient revenue, and we continue to diversify our business segments as shifts from inpatient care to ambulatory, home health and digital telehealth care continue across the industry," according to the financial report. "With a focus on revenue improvement initiatives, improvements in payment rates helped offset the impact of lower volumes."
Operating expenses were up nearly 6 percent during the quarter to $5.2 billion, including a 5.8 percent increase in salary rates. Trinity reported strong cost controls around contract labor and operational spending, and is using its internal staffing agency to stabilize the workforce. Contract labor decreased $1 million during the quarter due to the MercyOne acquisition.
Trinity has 183 days cash on hand, down from 211 days as of June 30. The MercyOne acquisition used eight days of cash on hand.
CommonSpirit Health is based in Chicago.