Kaleida Health, Buffalo, N.Y., lost $15.3 million from operations in fiscal 2013 as expenses rose at almost twice the rate of revenue.
Kaleida's results mirror a Moody's Investors Service report from this year that said expense growth at not-for-profit hospitals and health systems continues to surpass the rate of revenue growth—due in part to federal reimbursement cuts and small rate bumps from commercial insurers. Kaleida's revenue rose 3.5% to $1.26 billion (PDF). Expenses, however, increased 6.1%. Supplies alone soared almost 10% year over year, while salaries and benefits ticked upward 7.4%.