Dive Brief:
- Intermountain Healthcare reported net income of $2.16 billion in the first nine months of the year, up 1% from the same period a year ago. A drop in operating income and steep investment loss dampened results in the latest period.
- The Salt Lake City-based system of 33 hospitals and 385 clinics reported revenues of $10.2 billion for the year to date, up 28% over the first nine months of 2021.
- A 45% surge in employee compensation and benefits, compared to a year ago, drove total expenses to $9.46 billion in the latest nine-month period, up 35% year over year.
Dive Insight:
It has been a busy year for Intermountain, which completed a merger with Colorado-based SCL Health in April and named a new chief executive last week.
Chief Operating Officer Rob Allen was promoted to president and CEO of the system, starting Dec. 1. He replaces interim CEO Lydia Jumonville, who previously led SCL. Former Intermountain CEO Marc Harrison left the organization in August.
Intermountain reported operating income for the nine months fell 55% to $285 million, weighed down by higher labor costs as well as more expensive hospital supplies. Supply costs climbed 30% to $1.79 billion.
Earnings before interest, depreciation and amortization declined to $749 million from $974 million in the year-ago period.
Inpatient admissions slipped 2% in the nine-month period, compared to a year ago, while outpatient visits fell 4%. Visits to the system’s non-hospital clinics declined nearly 2%.
Emergency rooms, however, saw more patients, with visits climbing 8%. Inpatient surgeries were flat, but outpatient surgeries rose 4%.
Intermountain reported a $2.2 billion investment loss for the first nine months of 2022, compared to investment income of $1.2 billion in the same period a year ago.
The combination of Intermountain’s 25 hospitals and SCL’s eight created a $12 billion operation billed as the country’s 11th largest nonprofit health system. Intermountain also insures 1 million people in Utah and Idaho.
