Cleveland Clinic reported a $104.5 million operating loss in the first quarter as labor expenses rose and inpatient admissions declined.
The 20-hospital not-for-profit health system’s revenue rose to $3.04 billion in the first quarter of 2022 from $2.81 billion in the prior-year period, when it posted $61.7 million in operating income. Cleveland Clinic’s labor costs jumped 16.6% over that span while supply and pharmaceutical expenses rose 7.8% and 11.2%, respectively.
The system recorded $212.5 million in investment losses in the first quarter, down from $243.2 million in investment income in the first quarter of last year.
Inpatient admissions dropped 2.3% year over year while average length of stay increased 3.8%. Inpatient admissions across the country are still well below pre-pandemic levels, on average, policy researchers said.
The system opened the 184-bed Cleveland Clinic London Hospital in March as the organization continues to expand its international footprint.