Hospitals and health systems, like ASCs, are being affected by rising labor and supply costs while reimbursements remain low.
Three major health systems have posted multibillion losses in either the third quarter or the first nine months of 2022.
1. Providence, a 51-hospital system headquartered in Renton, Wash., ended the first nine months of 2022 with an operating loss of $1.1 billion. The system said in a news release that its third quarter financial results showed the "ongoing impact of inflation, the national healthcare labor shortage, delayed reimbursement from payers, global supply chain disruptions and financial market weakness."
2. Oakland, Calif.-based Kaiser Foundation Health Plan, Kaiser Foundation Hospitals and their subsidiaries reported a net loss of $1.5 billion for the quarter ending Sept. 30. The company posted total operating revenues of $24.3 billion and total operating expenses of $24.3 billion for the quarter.
3. Cleveland Clinic reported a more than $1 billion loss for the first nine months of 2022. The 20-hospital health system reported $469.2 million in third quarter net losses, a significant drop from $422.2 million net income last year. Cleveland Clinic's investment returns were nearly $682 million lower for the third quarter this year than last due to "unfavorable financial markets," according to the health system's financial report.