Livonia, Mich.-based Trinity Health, one of the largest nonprofit health systems in the country, reported an operating loss of $283.5 million for the first nine months of its fiscal year up to March 31.
The loss, which included a reduction of $137.2 million from pandemic-related provider relief funds compared with the same period in 2022, also compared with an operating gain of $139.7 million in 2022.
Operating revenues and expenses increased year over year with acquisitions during the period accounting for much of that, Trinity Health said. Operating revenue totaled $15.9 billion for the nine months while expenses totaled $16.2 billion.
The 88-acute-care-hospital system continues to face challenges related to staffing and supply costs.
“Downward pressure on fiscal year 2023 margins was further driven by controlled expense growth that is still outpacing revenue growth, primarily premium labor rates and inflation with significant price increases impacting supplies,” management said in the filing.
Salaries, wages and employee benefit costs, excluding the impact of acquisitions and the Dec. 21 sale of St. Francis Medical Center, rose $171.2 million, or 2.2 percent, the system said. Such acquisitions during the period included the purchase of Davenport, Iowa-based Genesis Health System on March 1 and of Des Moines, Iowa-based MercyOne on Sept. 1.
Overall income totaled $912.5 million compared to $99.3 million in the same period ending March 31, 2022, driven primarily by much improved investment returns, totaling $457.3 million in the period.
Days of cash on hand totaled 180 as of March 31, 2023, versus 237 one year earlier, and the system’s long-term debt totaled $6.8 billion.