There is still a long way to go, but Western New York’s second-largest health system posted better-than-expected financial results for 2023 as the organization continues to recover from its Covid-19 pandemic response and adapts to changes in how patients prefer to receive care.
Buffalo-based Catholic Health System recorded an operating loss of $42.5 million on revenues of $1.4 billion in 2023, according to information the system presented Thursday to bond investors.
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.
The system’s 2023 results were boosted by millions in one-time federal and state grants and – more importantly for its path forward – lower staffing agency costs, increased patient volume and higher reimbursements from local insurance companies.
“We were very focused and organized, and the results show that, and so we’re very, very proud of the outcome,” Catholic Health President and CEO Joyce Markiewicz told The Buffalo News on Friday. “But we only get to be proud for a short amount of time, because there’s still so much more work to do.”
The challenges ahead for Catholic Health, and other health systems, include continuing to alter operations to reflect patients seeking more care in outpatient and ambulatory settings. Workforce shortages continue to linger, from nursing to dietary to housekeeping positions. And Catholic Health still faces the ongoing challenge of certain reimbursement rates not covering the actual cost of care.
That point is a focus of a campaign from New York State health systems and labor unions, which are calling on Gov. Kathy Hochul to increase Medicaid funding for hospitals and nursing homes in the 2024-25 budget that is expected to be finalized around April 1.
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