Thursday, March 30, 2017

Catholic Health Initiatives suffers $483 million in operating losses in 2016 | Healthcare Dive

  • Catholic Health Initiatives is including its $483 million operating loss in its merger plans with Dignity Health. 
  • CHI says the losses were due to “lower patient volumes, higher labor costs, increased pharmacy prices, and reduced reimbursement in Medicare and Medicaid,” according to a Modern Healthcare report.

An aggressive growth strategy was driving losses at CHI.  Fueled by anxiety and market share health systems merged in order to capture market and become more efficient.  The results were opposite.  

Electronic health records increase operating costs and decreased margins significantly.

Catholic Health Initiatives is not alone with the backlash on expenses, investment, and reduced in patient volume

Revenues for the nonprofit health system with 103 hospitals in 17 states increased 7.4% from $14.8 billion in 2015 to $15.9 billion in 2016. However, expenses rose 10.2% over the same time to $16.1 billion from $14.6 billion in the previous year. Losses occurred even though the struggling health system has laid off workers, sold off $600 million in real estate, and stepped back from its failed health plan.


Catholic Health Initiatives suffers $483 million in operating losses in 2016 | Healthcare Dive
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