by Robert King | Nov 30, 2020
Cleveland Clinic posted increased operating income and revenue in its third quarter compared to the same period last year, it reported in unaudited financial statements.
The Ohio-based health system reported its operating income reached $133.9 million for the quarter ending Sept. 30, up about 16% from its operating income of $115.2 million in the third quarter of 2019. That was on revenue of $2.72 billion for the quarter, up from $2.65 billion it posted during the same quarter a year earlier, due in part to CARES Act Provider Relief Fund payments.
Still, the 18-hospital system has been roiled by COVID-19, which has caused a decline in patient revenue and increases in expenses.
The system posted $6.5 billion in net patient service revenue for the first nine months of the year, a drop from $7 billion in the same period in 2019. At the same time, the system’s expenses grew to $7.1 billion for the first nine months, a slight increase over the $6.9 billion it spent in 2019.
A big driver for the increase in expenses has been its supply chain, on which Cleveland Clinic spent $820 million in the first nine months. That was up about 7% from $768 million for the same period in 2019. Hospitals across the country have faced higher expenses for supplies such as personal protective equipment and devices such as ventilators and critical drugs.