A $4 billion contribution from the merger with the Sisters of Charity of Leavenworth Health System helped boost the system’s net income.
Intermountain Health Care— a Utah-based nonprofit system of 33 hospitals — reported that revenue from the first half of 2022 jumped 25% year over year and net income rose 46% year over year to $2.7 billion.
Intermountain Healthcare’s increase in net income was due to a $4 billion contribution from its merger with the Sisters of Charity of Leavenworth Health System, which took effect April 1, 2022. Despite the increase in revenue and net profit, Intermountain posted a 38% year-over-year decline in operating profit to $285 billion for the first half of the year, from $461 billion for the same period in 2021.
As with most hospitals and healthcare systems, expense continues to be an issue for Intermountain Healthcare. Spending increased 31% year-over-year to $5.9 billion, compared to $4.5 billion for the same period ended June 30, 2021. The increase in spending was driven by increases in employee compensation and benefits, increased claims, and the cost of medical supplies.
Analysts expect nonprofit hospitals to have a tough financial run for the rest of this year. “macro-inflationary pressures.”
In addition, Intermountain Healthcare recently appointed Lydia Jumonville as interim president and CEO following the departure of former CEO Marc Harrison. Jumonville served as president and CEO of Colorado-based SCL Health from 2017 to 2022 before the organization merged with Intermountain Healthcare.
Amanda Schiavo is Finance Editor for HealthLeaders.