Robbinsdale, Minn.-based North Memorial Health isn’t unusual in reporting a net loss in 2022, but the two-hospital system did show signs of improved operating income in the final quarter as contract labor costs declined, according to a March 16 filing.
While North Memorial reported a 2022 operating loss of $19.5 million, there was an operating gain of $14.8 million in the last three months. Those figures compared with a 2021 operating gain of $9.1 million and an operating loss of $10.6 million in the final three months of 2021.
“Total labor expense (excluding non-recurring labor strike expense) as a percent of revenue decreased to (55.9%) as compared to (63.6%) in the same prior quarter in 2021, reflecting the continued focus on decreasing reliance on premium labor,” management said in the filing.
The system saw a net loss of $68.2 million in 2022 as investment returns declined. That figure compared with net income of $78.2 million in 2021.
As well as its two hospitals offering 648 beds, North Memorial employs over 5,000 people and operates a number of outpatient locations focused on Northwest Minneapolis.
