Intermountain Healthcare continues to make money during a difficult stretch for the hospital sector as it recorded $2.16 billion in net income for the first nine months of the year, according to the company’s unaudited financial report.
Revenue for the Salt Lake City-based nonprofit health system reached $10.2 billion, up 28% from the corresponding period last year. Expenses rose 35% to $9.46 billion, which included a 45% jump in employee compensation spending and a 30% increase in supply costs. Net operating income plunged 55% to $285 million.
Intermountain Healthcare also reported $2.21 billion in investment losses during the nine-month period as weak financial markets continue to plague health systems’ financial performance.
The merger between Intermountain Healthcare and Broomfield, Colorado-based SCL Health, which took effect April 1, boosted the company’s results this year. Intermountain operates 33 hospitals and nearly 400 clinics and has about 59,000 employees in seven states.
Last week, Intermountain announced it would promote Chief Operating Officer Robert Allen to president and CEO effective Dec. 1. Allen will replace interim CEO Lydia Jumonville, who has led the system during the several months since Dr. Marc Harrison stepped down to join the venture capital firm General Catalyst.
Also last week, Rochester Minnesota-based nonprofit Mayo Clinic reported financial woes with $454 million in net operating income for the first nine months, a steep drop from $1.02 billion in the year-ago period. Revenue rose 4% to $12.08 billion, but expenses rose 9.5% to $11.62 billion.
Providence reported a $1.1 billion operating loss during the first three quarters, which the Renton, Washington-based nonprofit health system partially attributed to staffing shortages and weak market conditions. CommonSpirit Health, a nonprofit based in Chicago, posted a net loss of $397 million for the first quarter of its fiscal year 2023, which ended Sept. 30, factoring in a 5.4% improvement in operating revenue, but a 5.6% increase in expenses.