Vancouver, Wash.-based PeaceHealth saw further losses in its fiscal year ending June 30 even as it reduced labor costs.
The 11-hospital system reported a $240.7 million operating loss for the period, building on an approximately $252 million loss the previous year. The resulting operating margin for fiscal year 2023 was -7.3 percent.
While revenues rose slightly to $3.3 billion — and salaries, wages and contract labor expenses were down almost 2 percent, totaling almost $1.8 billion — supplies and professional fees all rose from the previous year.
Net losses were reduced as investment gains helped record a loss of $83 million, versus a $554.4 million net loss in 2022.
PeaceHealth suffered a credit downgrade July 7 when S&P Global reported on the system's labor challenges and described management targets of implementing $240 million of financial improvements in fiscal 2024 as aggressive.
The system, which serves its home state as well as Oregon and Alaska, has also eliminated positions and closed some clinics.