CHI posts $585M operating loss in FY17
- Catholic Health Initiatives reported a $585.2 million operating loss for fiscal year 2017, ended June 30, up from $371.4 million in 2016.
- Non-operating income was strong, however, reaching $713.6 million, versus a $204.2 million loss the previous year. The performance benefited from investments of nearly $640 million, according to CHI’s 2017 annual report.
- Overall, CHI saw a net surplus of $128.4 million — a welcome result after last year’s net loss of $575.7 million. Total operating revenue for 2017 totaled $15.5 billion.
CHI has made strides toward getting back on sound financial ground, officials said in a statement, but challenges remain, particularly in some markets.
During the year, CHI divested its KentuckyOne facilities, a move expected to bring in $534.9 million. The system also transitioned operations, management and control of University of Louisville Medical Center back to the university and sold nearly all of its Louisville area acute care operations.
The company said it has also found a buyer for Medicare Advantage plans, but added that uncertainty around the future of the Affordable Care Act has delayed the sale of its QualChoice Health commercial insurance segment.
The Denver-based system is in talks with Dignity Health about a possible merger of their organizations. The non-for-profit hospital systems signed a nonbinding letter of intent to explore an affiliation in September 2016. San Francisco Business Times reported in June that the two organizations were in "final stages" of merger discussions.