Jewish Hospital and affiliated medical facilities incurred an operating loss of $56.9 million for the year ended June 30, according to a new financial report from Catholic Health Initiatives.
That’s more than $1 million per week. It’s also $12.5 million worse than the year before.
The latest data arrived as KentuckyOne Health and its parent, Denver-based CHI, are continuing to try to sell the hospital and other properties, though negotiations with New York-based hedge fund BlueMountain Capital Management are taking longer than expected.
In its annual report, released last week, CHI said that for the fiscal year ended June 30, it generated a net income of $221 million, about twice as much as the year before. The improvement was a result primarily of lower restructuring and impairment charges and other losses, which fell by $222 million.
The nonprofit achieved the improvements, but many of its patient figures are declining: Acute admissions fell nearly 5 percent, while outpatient nonemergency room visits declined 5.1 percent. Physician visits increased by nearly 4 percent, though.
CHI CFO Dean Swindle said in a news release that the health system “saw substantial improvements in key metrics in the 2018 fiscal year.”
“Despite challenges in some markets and a difficult environment overall for health care in this country, we are pleased with the results and look forward to significant progress throughout the current fiscal year,” he said.
CHI’s latest document also further lays out the financial hit KentuckyOne took when it ended its joint operating agreement with the University of Louisville Hospital.
In the fiscal year ended June 30, 2017, UofL Hospital generated an operating profit of $47.4 million — while Jewish lost $44.4 million. That means profits generated by the university’s hospital, of which KentuckyOne at the time received 90 percent, were almost high enough to offset losses generated by Jewish.
However, last summer, UofL Hospital operations and profit reverted to the university, meaning that KentuckyOne began receiving no profit from the hospital at the same time that Jewish was reporting even greater losses.
Excluding Jewish Hospital and the other facilities KentuckyOne wants to sell, CHI’s Kentucky operations generated an operating profit of $89.1 million, up $20.3 million or nearly 30 percent, from the prior year.
CHI said that its remaining Kentucky operations “will focus on providing high quality and cost-effective care across central and eastern Kentucky, with the acute care hospitals and physician practices to position as a leader in the Commonwealth for the long-term.”