Cleveland Clinic posts $339M profit in Q2 after major patient revenue rebound
by Robert King | Aug 30, 2021
The Cleveland Clinic generated $339 million in operating income for the second quarter of the year as its patient service revenue saw a massive 50% rebound compared to the same period in 2020 when the system faced major strain from the pandemic.
The hospital system generated $3.2 billion in operating revenue for the second quarter compared to $2.3 billion for the second quarter in 2020. A major reason was the boosted $2.7 billion in net patient service revenue, up from $1.8 billion over the same period last year.
The Cleveland Clinic used a series of measures to reduce costs including “restricting travel, reducing purchased/administrative service expenses and other controllable costs, suspending annual pay increases for caregivers in 2020 and postponing certain non-critical capital expenditures,” according to its earnings report.
The system’s patient revenue in the second quarter of 2020 was hammered by the pandemic, which caused hospital systems to shutter elective procedures and outpatient volumes to plummet. Volumes have rebounded since and for some systems even surpassed pre-pandemic levels.
“On a same facility basis, acute admissions increased 23%, total surgical cases increased 65.5% and outpatient evaluation and management visits increased 34.9% in the second quarter of 2021 compared to the same period in 2020,” the Cleveland Clinic’s report said.