Intermountain runs a meager profit weighed down by supply and labor costs

0

This audio is automatically generated. Please let us know if you have any feedback.

diving letter:

  • Intermountain Healthcare reported net income of $2.16 billion in the first nine months of the year, up 1% from the same period last year. A decline in operating income and high investment losses dampened results in the last period.
  • The Salt Lake City-based system of 33 hospitals and 385 clinics reported revenue of $10.2 billion for the year to date, up 28% from the first nine months of 2021.
  • A 45% year-over-year increase in employee compensation and benefits pushed total spend to $9.46 billion for the trailing nine months, a 35% year-over-year increase.

Dive insight:

It’s been a busy year for Intermountain, which completed a merger with Colorado-based SCL Health in April and named a new chief executive last week.

Chief Operating Officer was Rob Allen promoted to President and CEO of the system as of December 1st. He replaces interim CEO Lydia Jumonville, who previously ran SCL. Former Intermountain CEO Marc Harrison left the company in August.

Intermountain’s reported nine-month operating income declined 55% to $285 million, weighed down by higher labor costs and more expensive hospital supplies. Utility costs increased 30% to $1.79 billion.

Earnings before interest, depreciation, and amortization declined to $749 million from $974 million in the year-ago period.

Inpatient admissions decreased 2% year over year for the nine months, while outpatient visits decreased 4%. Visits to out-of-hospital clinics fell by nearly 2%.

However, more patients were treated in emergency departments, with visits increasing by 8%. Inpatient surgeries were flat, but outpatient surgeries increased by 4%.

Intermountain reported an investment loss of $2.2 billion for the first nine months of 2022, compared to investment income of $1.2 billion for the same period last year.

The combination of Intermountain’s 25 hospitals and SCL’s eight resulted in a $12 billion operation that ranks as the 11th-largest nonprofit healthcare system in the country. Intermountain also insures 1 million people in Utah and Idaho.

Share.

Comments are closed.