Western New York’s largest health system made progress last year in its efforts to dig out from the lingering financial effect of the Covid-19 pandemic.
Kaleida Health posted a $30 million operating loss on revenues of $2.3 billion in 2023, said Michael P. Hughes, the Buffalo-based health system’s senior vice president and chief administrative officer. The operating loss was less than half of the $80.6 million operating loss Kaleida posted in 2022, while revenues were up 12% from $2.05 billion.
Buffalo-based Catholic Health System recorded an operating loss of $42.5 million on revenues of $1.4 billion in 2023. While still losing money, Catholic Health had budgeted for a much larger operating loss in 2023, following a year in 2022 when the system recorded a $190 million loss on revenues of $1.2 billion.
Hughes said the operating loss outperformed what Kaleida budgeted by $21 million. The health system’s bottom line last year benefited from a total of $73 million in one-time state and federal funding, he added.
Revenues, in particular, bounced back, up $200 million from 2022, Hughes said.
Kaleida’s main competitor, Catholic Health System, saw similar trends play out in its 2023 performance. Catholic Health recorded an operating loss of $42.5 million on revenues of $1.4 billion last year, results that beat expectations due to millions in one-time federal and state grants, lower staffing agency costs, increased patient volume and higher negotiated reimbursements from local insurance companies.
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