A spike in operation expenses fueled by labor costs weighed down AdventHealth's financial performance last year, the nonprofit health system reported Tuesday.
AdventHealth suffered a $837.92 million net loss for 2022, compared with a $1.51 billion gain the prior year. Revenue rose 5.5% to $15.7 billion and investment losses reached $1.16 billion.
Operating expenses rose 11% to $15.42 billion, including $1.1 billion in excess labor costs, the Altamonte Springs, Florida-based health system announced. Inflation, spending on purchased services and professional fees, and changes in asset values also contributed to rising expenses.
AdventHealth, which operates more than 50 hospitals in nine states, has made significant changes to its business in recent years.
In February, AdventHealth announced plans to phase out its Centura Health joint venture with Chicago-based CommonSpirit Health. A month prior, it signed an agreement to sell nine skilled nursing facilities in Florida, Kansas and Texas. In 2021, AdventHealth and St. Louis-based Ascension agreed to unwind their Amita Health joint venture. At the beginning of this year, AdventHealth and University of Chicago Medicine launched a joint venture.