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Nonprofit hospitals squeezed by pricier labor, investment losses in Q1, sending them into the red
erdikocak via Getty Images Nonprofit hospitals faced a tough first quarter with many reporting net losses amid escalating expenses for pricier labor and diminished investment returns.
“This first quarter of the calendar year here is going to be just one of the worst for most of our providers,” Fitch Analyst Kevin Holloran said last week on a webinar.
Fueled by the latest coronavirus variant, hospitals again were confronted with a January wave of COVID-19 cases and hospitalizations, which can crowd out elective procedures and cause patients to pause planned procedures.
The need for labor was in high demand during the January surge, further increasing expenses year over year amid record inflation in the U.S. that has led to costlier goods and services.
Some of the nation’s largest nonprofit health systems have reported both operating and net losses for the three months ended March 31, including Ascension and CommonSpirit.
Ascension reported an operating loss of about $671 million, widening its loss from about $17 million during the same period last year.Investment losses helped fuel the St. Louis-based system’s overall net loss of about $885 million for the three months ended March 31, which is Ascension’s third quarter with a fiscal year end of June 30.CommonSpirit […]