Temple University Health System has reported a significant improvement in its financial performance, with an operating loss of $23.3 million for the nine months ending March 31, compared to a loss of $53.2 million during the same period the previous year. This update was shared with investors by the nonprofit organization based in North Philadelphia.
Despite this progress, expenses remain a concern for Temple, particularly related to overtime and contract staff costs. However, these expenses have decreased from $69 million to $50 million in the first three quarters of fiscal 2024. In terms of revenue, Temple saw an increase from $1.91 billion to $2.08 billion in the first nine months of fiscal 2024, representing an 8.9% growth. This growth was primarily attributed to higher inpatient discharges, partially offset by a decrease in lung transplants due to a shortage of certified registered nurse anesthetists in the region.
Looking ahead, Temple plans to continue supporting St. Christopher’s Hospital for Children in the upcoming fiscal years, albeit with a reduced contribution of $4 million compared to $5 million in the past two years, according to CEO Mike Young’s statement to investors. With regard to Chestnut Hill Hospital, which Temple acquired in partnership with two others at the beginning of 2023, Young expressed confidence that it will become profitable by the end of fiscal 2025. Since more involvement from Temple University Hospital teams began in November, the average monthly loss at Chestnut Hill has dropped from $2.5 million to under $1 million. Temple owns a 60% stake in Chestnut Hill, which generated $113 million in revenue from July to March
