The Cleveland Clinic’s net loss for the year to date has exceeded $1.5 billion as labor costs remain elevated.
The Ohio-based nonprofit reported an operating loss of $316.3 million for the first three quarters of 2022, compared with a profit of $549.44 million in the same period a year earlier, according to its financial statement. Major announced this week. Investment loss amounted to 1.26 billion USD.
Expenses for the first nine months of the year increased 15.5% to $9.21 billion, including a 16.3% increase in wages and salaries, in addition to increased costs for supplies, pharmaceuticals and services. service purchased.
Total revenue came in at $9.47 billion, up more than 4% year over year.
In the third quarter alone, the Cleveland Clinic’s costs rose 15% year-over-year to $3.14 billion. Revenue rose 7.7% to $3.31 billion, although not enough to prevent an operating loss from exceeding $28 million after factoring interest-related expenses and reducing asset value. produce.
The Cleveland Clinic’s latest results reflect a tough year underway, with staff shortages and inflation dragging on financial statements across the industry. Ohio system posted net loss of 1.07 billion USD in the first half of 2022including a net loss of $786.93 million in the second quarter.
Credit rating agency Fitch Ratings downgraded the outlook for the nonprofit hospital sector to “worsening” earlier this year.
Also this month, Renton, based in Washington Providence records an operating loss of $1.1 billion in the first three quarters of 2022. And headquartered in Chicago CommonSpirit Health posted a net loss of $397 million in the first quarter of fiscal year 2023. Ascension, a non-profit Catholic health system based in St. Louis, reported a net loss of $811.83 million in the first quarter.