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Cleveland Clinic posts $61M profit in Q1 thanks to strong patient service revenue

by Robert King | Jun 1, 2021

Cleveland Clinic earned $61 million in profits for the first quarter of the year, a major boost from the $39 million loss it posted for the same quarter in 2020.

The hospital system reported $2.8 billion in total unrestricted revenue for the quarter and $61 million in operating income thanks to higher-than-expected patient service revenue. However, the system is still expecting to face major cost pressures throughout the year due to the COVID-19 pandemic.

“In many cases, patient volumes will be suppressed,” the system’s earnings report, released Friday, said. “More services may be delivered through lower-cost settings, such as virtual or in-home care.”

Cleveland Clinic posted $2.5 billion in net patient service revenue, a major improvement over the $2.3 billion it posted for the first quarter of 2020 when the pandemic started.

But the system still is facing higher expenses for supplies and salaries for workers, which have shot up for hospitals across the country throughout the pandemic. Cleveland Clinic spent $1.5 billion on salaries and benefits for the first quarter compared with $1.48 billion for the same period last year. Costs for supplies also increased to $297 million, slightly above the $269 million it paid in the first quarter of 2020.

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Chris J. Stewart

Chris currently serves as President and CEO of Surgio Health. Chris has close to 20 years of healthcare management experience, with an infinity to improve healthcare delivery through the development and implementation of innovative solutions that result in improved efficiencies, reduction of unnecessary financial & clinical variation, and help achieve better patient outcomes. Previously, Chris was assistant vice president and business unit leader for HPG/HCA. He has presented at numerous healthcare forums on topics that include disruptive innovation, physician engagement, shifting reimbursement models, cost per clinical episode and the future of supply chain delivery.

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