Dive Brief:
- The newly rebranded Intermountain Health reported $549 million in net income for the first three months of 2023, an increase from the prior-year period when the health system posted a $298 million net loss.
- The Salt Lake City-based system brought in $4 billion in revenue compared with $2.8 billion in the period ended March 31 last year.
- Intermountain’s expenses still climbed 44% to $3.7 billion, with a large portion coming from employee compensation and benefits at $1.7 billion. But supply costs grew too, reaching $703 million during the quarter, an increase of 46% from a year earlier.
Dive Insight:
Like a number of other nonprofit hospital operators, Intermountain struggled in the first quarter last year, reporting a net loss driven by investment losses. The health system posted investment income of $481 million during the first three months of 2023, a 212% increase from the same period in 2022.
The system also reported increases in inpatient admissions, outpatient visits, inpatient days and emergency room visits. Net operating income decreased 20% from last year to $104 million this year.
Intermountain’s net assets grew 30% year-over year to $17.3 billion
Intermountain is coming off a period of upheaval. About a year ago, it closed a merger with fellow nonprofit SCL Health. The deal boosted Intermountain’s presence in the region, allowing it to expand into Colorado, Montana and Kansas and bringing its hospital count to 33. It also operates hundreds of clinics and SelectHealth, its health insurance subsidiary.
Months after the acquisition closed, CEO Marc Harrison announced he would step down from the role he had held for six years to join venture capital firm General Catalyst. Rob Allen, formerly chief operating officer of the nonprofit, took on the top job late last year, and Intermountain promoted a new COO in February.
