Cleveland Clinic posts $339M revenue in Q2 after main affected person income rebound
The Cleveland Clinic generated $339 million in working earnings for the second quarter of the 12 months as its affected person service income noticed a large 50% rebound in comparison with the identical interval in 2020 when the system confronted main pressure from the pandemic.
The hospital system generated $3.2 billion in working income for the second quarter in comparison with $2.3 billion for the second quarter in 2020. A serious purpose was the boosted $2.7 billion in web affected person service income, up from $1.8 billion over the identical interval final 12 months.
The Cleveland Clinic used a collection of measures to scale back prices together with “proscribing journey, lowering bought/administrative service bills and different controllable prices, suspending annual pay will increase for caregivers in 2020 and suspending sure non-critical capital expenditures,” in accordance with its earnings report.
The system’s affected person income within the second quarter of 2020 was hammered by the pandemic, which brought on hospital methods to shutter elective procedures and outpatient volumes to plummet. Volumes have rebounded since and for some methods even surpassed pre-pandemic ranges.
“On a identical facility foundation, acute admissions elevated 23%, complete surgical circumstances elevated 65.5% and outpatient analysis and administration visits elevated 34.9% within the second quarter of 2021 in comparison with the identical interval in 2020,” the Cleveland Clinic’s report mentioned.
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Volumes additionally elevated barely in comparison with the identical interval in 2019.
Acute admissions elevated 0.5% within the second quarter, complete surgical circumstances elevated 0.6% and outpatient visits elevated by 3.4% in comparison with 2019.
“Internet affected person income has additionally benefited from price will increase on the system’s managed care contracts that grew to become efficient in 2021,” the Cleveland Clinic mentioned. “Over the previous couple of years, the system has initiated nationwide, regional and native income administration initiatives designed to enhance affected person care entry all through the system whereas striving to make sure the protection of sufferers, guests and caregivers.”
The clinic’s working earnings was additionally a significant enhance in comparison with the working lack of $201 million it posted for the second quarter of 2020.
Nonetheless, the system did pay extra in bills in comparison with 2020, as complete working bills elevated $334.8 million within the second quarter.
“The expansion in bills is primarily because of the improve in sufferers served,” the report mentioned.
Provides accounted for the most important improve in bills, rising by 20.2% and by $52.8 million within the second quarter in comparison with 2020. However a $3.4 million lower in nonmedical provides helped offset the enhance.
A serious purpose for the enhance is a rise in surgical circumstances.
“The lower in non-medical provides was pushed primarily by a lower in minor tools and software program prices as a part of the system’s initiatives to scale back controllable prices,” the report mentioned.
Drug prices and staffing bills have been additionally main drivers, with salaries and wages going up by 13% within the second quarter in comparison with the identical interval in 2020 and prescription drugs by 14.7%.
Hospitals throughout the nation have been squeezed by growing bills linked to the pandemic, particularly for provides and employees.
However main methods have been reporting earnings within the second quarter because of the key rebounds in affected person volumes, in some circumstances recovering to above pre-pandemic ranges.
