- Advocate Aurora Health posted a net loss of $912 million through Sept. 30, nine months into its fiscal year, as investment losses pulled down results, extending the loss it recorded through the first half of 2022.
- The Midwest health system’s operating income plunged 87% to $59 million through Sept. 30, compared to the same time last year, as expenses climbed largely due to higher labor costs.
- The system said it’s on track to close its merger with Atrium Health “at or before year end 2022.”
Advocate Aurora’s results add to the chorus of hospital providers reporting continued labor challenges.
This week, CommonSpirit Health reported a loss in its most recent quarter due to higher labor costs and fewer patients turning up for care in key service areas.
Adovcate Aurora and CommonSpirit rank as some of the nation’s largest health systems. Advocate Aurora’s results help paint a picture of how larger systems have fared so far this year. Health systems continue to report financial strain even though the nation is no longer at the height of the COVID-19 pandemic. Congress came to the aid of providers as the pandemic hit, providing billions in assistance to help providers on the front lines.
Consultancy Kaufman Hall said 2022 could shape up to be “one of the worst financial years for hospitals.”
Meanwhile, most of the nation’s largest insurers saw profits continue to climb in the third quarter as a possible recession looms.
Advocate Aurora said outpatient and physician visits were up through September, while discharges from hospitals and home care visits were down.
Advocate Aurora is poised to create one of the nation’s largest nonprofit health systems with Atrium Health. The deal first needs to clear regulatory hurdles. Together the two would have $27 billion in combined revenue and 67 hospitals across six states.