Most Philadelphia nonprofit health systems had improved financial results in fiscal 2024

Harold Brubaker, The Philadelphia Inquirer on Nov 7, 2024

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PHILADELPHIA — All but two nonprofit health systems in Southeastern Pennsylvania improved their financial results in the fiscal year that ended June 30.

Despite the improvement, sixof 11 systems tracked by The Inquirer still lost money and two — Jefferson Health and Temple University Health System — effectively broke even. The sector is trying to work though a surge in wages and other expenses that happened near the end of the COVID-19 pandemic.

Redeemer Health, which was the last of the systems to publish its financial report for bondholders, and Trinity Health Mid-Atlantic posted weaker operating results in fiscal 2024.

Local health systems are starting to report results for the quarter that ended Sept. 30.

Main Line Health, the first to report last week, showed positive momentum continuing. The four-hospital system narrowed its quarterly loss to $3.6 million from $27.8 million. That was after slashing its fiscal 2024 loss to $61 million from $125 million the year before.

Other systems are expected to report their first-quarter results over the coming month.

A closer look at Temple's past year

Temple is scheduled next week to report results for the first quarter of fiscal 2025. This follows an annual report detailing how Temple swung to a narrow operating profit of $973,000 from a 2023 loss of $59 million. Temple moved slightly into the black despite a $44 million increase in medical malpractice expenses, including insurance premiums and amounts paid to settle cases during the year.

The results also included a $17 million loss at Chestnut Hill Hospital, which Temple acquired at the beginning of last year in a joint venture with Philadelphia College of Osteopathic Medicine and Redeemer Health.

Temple owns 60% and manages the 148-bed hospital in Northwest Philadelphia. Because of repeated losses, Temple wrote off its $16.8 million investment in the facility over the last two years. CHH Community Health Inc., a new nonprofit established to own Chestnut Hill, took out a $40 million line of credit in August — $15 million of which was used to repay Temple.

Redeemer also wrote off its $7 million dollar investment in Chestnut Hill. That loss was part of an overall $53 million annual loss, up from $39 million the year before. Redeemer operates one hospital in Meadowbrook, Montgomery County, and an assortment of other businesses, including nursing homes and home care.

Last month, Redeemer sold its home health and hospitals businesses in Elizabeth and Egg Harbor, N.J., to Pennsauken-based Bayada Home Health Care Inc. for an undisclosed price.