Rising expenses are still an issue for most healthcare providers.
Lehigh Valley Health Network—a care provider operating 13 hospitals in Eastern Pennsylvania—released its fiscal year 2022 earnings report, which showcased a year-over-year decline in operating income, a rise in revenue, but an increase in expenses for the year ended June 30, 2022.
Lehigh Valley Health Network reported an operating income of $78.5 million for the fiscal year, which resulted in an operating margin of 2%, a drop from the $150.7 million in operating income, and 4.4% margin for the 2021 full year.
Lehigh Valley Health Network saw an improvement in emergency room visits and inpatient volumes for the full year. ER visits increased by 21.1% year-over-year to 285,115. Inpatient volume continued to experience marginal growth of 0.5%. Physician visits and outpatient registrations increased year-over-year by 12.2% and 3.1%, respectively. Walk-in visits grew by 47.4% year-over-year. Lehigh Valley Health Network also opened three new hospitals during fiscal 2022.
Expenses grew by 14% when compared to the last fiscal year, however, revenue grew by 12% year-over-year. The healthcare provider attributed the rise in expenses to the high costs resulting from wage, labor, and supply challenges.
"While staffing challenges and the need for outside contracted labor continues, management has been working diligently to improve staffing and reduce utilization of temporary labor wherever possible," Lehigh Valley CFO Thomas Marchozzi, said in the earnings release. "Enhanced recruitment efforts continue in all areas to combat staffing shortages."
Amanda Schiavo is the Finance Editor for HealthLeaders.