Becker's Hospital Review

34 CFO / FINANCE 7 health systems reported net income over $1B in 2021 By Alia Paavola W hile many hospitals face financial hardships and rising expenses from the COVID-19 pandemic, several large health systems ended 2021 with net income above $1 billion. ese big health systems attributed the financial performance to several factors, including bigger investment gains and high- er-acuity patients. Seven health systems that posted net income of $1 billion last year: 1. Pittsburgh-based UPMC, an integrated delivery system with 40 hospitals, recorded a net income of $1.1 billion in 2021, driven by an operating income of $843 million and nonoperating gains of $810 million. 2. AdventHealth, a 48-hospital system based in Altamonte Springs, Fla., recorded a net in- come of $1.5 billion in 2021. e net income included an operating income of $994.6 mil- lion and investment gains of $517.7 million. In 2020, the health system's net income was $914.8 million. 3. Cleveland Clinic reported a 66.7 percent increase in net income for the 12 months ended Dec. 31. e 19-hospital system saw its net income hit $2.2 billion, including an operating income of $746.3 million and in- vestment gains of $1.4 billion. 4. Rochester, Minn.-based Mayo Clinic's net income for 2021 was $3.6 billion, up from $2.5 billion a year earlier. e results included an operating income of $1.2 billion. 5. Driven by strong investment gains, Oak- land, Calif.-based Kaiser Permanente re- corded a net income of $8.1 billion in 2021, an increase of $1.7 billion from 2020. e sharp rise in net income from the integrated delivery system with 39 hospitals included $7.5 billion in other income, including in- vestment gains, and $611 million in operating income for 2021. 6. Nashville, Tenn.-based HCA Healthcare, a 182-hospital system, reported a net income of $7.7 billion in 2021, including investment gains and operating profits. 7. Tenet Healthcare, a 60-hospital system based in Dallas, reported net income of $1.5 billion on revenues of $19.5 billion in 2021. Tenet ended the 12-month period with an op- erating income of $2.9 billion, up from $2 bil- lion recorded one year before. It also recorded losses on nonoperating activities and said its results for the year ending Dec. 31 included a pretax gain of $406 million associated with the divestiture of five Miami-area hospitals, as well as stimulus funds totaling $205 million. n Healthcare workers' pay increases lag behind white-collar raises By Marissa Plescia A s workers experience stronger bargaining power amid a major workforce shortage, many white-collar professions are seeing an increase in wages, The Wall Street Journal reported Feb. 21. Meanwhile, healthcare workers aren't seeing as big of an im- provement in compensation, a new Payscale survey found. Healthcare is one of the least likely industries to give a pay raise of over 3 percent, with only 32 percent of respondents saying they would give such a raise. Finance, information and professional employees' compensation rose 4.4 percent in January 2022 from 2021, compared to a 4 percent wage growth for all workers, according to the Journal. Higher-wage sector employees saw the fastest month-over- month earnings growth in January 2022, according to the Jour- nal. The professional and business services sector experienced a 0.8 percent wage increase compared to December 2021. Leisure and hospitality had a 0.1 percent wage increase. However, annual inflation is above 7 percent — the highest it's been in 40 years — overshadowing wage increases for many, ac- cording to the Journal. n Cleveland Clinic gets approval for airport welcome center By Naomi Diaz C leveland Clinic received approval from the Cleveland City Council to open a welcome center at Cleveland Hopkins International Airport, News 5 Cleveland reported March 22. The Cleveland City Council approved legislation March 21 allowing Cleveland Clinic to open a 480-square-foot welcome center for arriving and departing patients. Patients arriving or departing the clinic will be met in the center by a greeter who will connect them to ground transportation, lodging and highlights of Cleveland. A three-year lease for the center, which has not yet been signed, will allow the clinic to create a center to accommodate its 3,000 patients who fly into Cleveland for its services each year. At the time of publication in March, Cleveland Clinic had yet to finalize plans for the center. n

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