Detroit-based Henry Ford Health System reported an operating margin of $138,000 in 2022, a $168 million improvement over the prior year, the health system said in a March 24 news release.
However, losses from investments dragged down the five-hospital system’s overall performance, resulting in a net loss of $234 million in 2022 compared to a $41 million net gain in 2021.
Like most health systems, inflation, declining patient volumes and higher labor costs affected Henry Ford’s bottom line last year, but President and CEO Bob Riney said he is “encouraged by some of the trends we are seeing” and is seeing positive momentum in 2022 carrying over into 2023.
“Unprecedented inflation, higher than normal labor costs and a year-over-year decrease in patient volume has put increasing pressure on health systems,” Robin Damschroder, chief financial and business development officer, said in the release. “Our stability is attributable to a diversified revenue base and doubling down on key investments to expand ambulatory, community-based and retail health services, as well as health plan membership.”
