Financial Challenges and Operating Losses Plague Cleveland-Area Hospitals

University Hospitals in Cleveland, Ohio, has reported its second consecutive operating loss, citing increased employee costs, inflation, and the purchase of a new My Chart patient portal powered by Epic as contributing factors.

Over the past two years, UH has reported losses totaling more than half a billion dollars, with an operating loss of $256 million in 2023, $302 million in 2022, and a net operating income of $104.5 million in 2021. The addition of the Epic system alone accounted for $179 million in expenses, but the hospital system believes it is already starting to pay off.

Bradley Bond, UH’s Chief Financial Officer, stated that despite the challenges, the hospital system is taking the right actions to improve its financial situation. Measures such as reducing reliance on expensive visiting nurses and making it easier for patients to book appointments through Epic are seen as positive steps.

Other healthcare systems in the area, such as Southwest General Health Center and MetroHealth, have also reported operating losses in recent years, but UH’s losses far exceed theirs. Southwest General lost $21.6 million in 2023, while MetroHealth went from a positive operating income in 2022 to an operating loss in 2023.

Despite the financial challenges, UH remains optimistic about its future. The implementation of the Epic system is expected to streamline operations and improve financial performance. The hospital system has also made strategic changes, such as closing satellite hospitals and consolidating services, to cut costs and focus on providing the best patient care.

Overall, UH is working to stabilize its workforce, reduce costs, and carefully manage its resources to navigate the current financial landscape in the healthcare industry. The hospital system remains committed to fulfilling its mission of providing quality care to its patients.