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. The Ohio system posted a net loss of $1.07 billion in the first half of 2022, including a net loss of $786.93 million in the second quarter.
Credit rating agency Fitch Ratings downgraded the nonprofit hospital sector’s outlook to “worsening” earlier this year.
Also this month, Renton, Washington-based Providence recorded an operating loss of $1.1 billion for the first three quarters of 2022. And Chicago-based CommonSpirit Health posted a net loss of $397 million. la 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.
