Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Opinion
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
  • Data Center
    • Data Center Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Hospital Systems
November 15, 2021 04:25 PM

Federal COVID-19 grants keep Henry Ford in the black

Tara Bannow
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Copy of Corona-Money-3_i_i.jpg

    Henry Ford Health System's latest financial filing show it continues to rely on federal COVID-19 stimulus grants to stay in the black as the system struggles with mounting staff and supply costs.

    Without the stimulus funds, the Detroit-based system would have lost $14 million on $5.1 billion in operating revenue in the nine months ended Sept. 30, a 0.3% loss margin. That's a fraction of the $96 million operating loss Henry Ford would have posted on $4.8 billion in revenue in the comparable 2020 period without the federal help, a 2.1% loss margin.

    Including the funds, the system posted $6.5 million in operating income in the 2021 period and $264 million in the 2020 period. Henry Ford recorded almost $360 million in relief funding in the 2020 period and $21 million this year.

    Even as some not-for-profit systems have been remarkably profitable despite the ongoing pandemic, Henry Ford has had a particularly difficult time weathering the resulting staffing and supply cost spikes. The system recently said it would hire 500 nurses from the Philippines over the next few years to help with its ongoing nursing shortage. In September, Henry Ford took 120 beds offline across its five hospitals because it didn't have enough people to staff them. A spokesperson said at least some of those had reopened, but could not provide an exact number.

    Download Modern Healthcare’s app to stay informed when industry news breaks.

    Henry Ford's latest release shows salaries, wages and benefits expenses—the largest category by far, comprising 43% of expenses—grew 8% year-over-year. The system said that's because of bringing in temporary staff and raising the minimum wage to $15 per hour.

    Henry Ford also spent more on wage program initiatives designed to address the competitive labor market. Robin Damschroder, Henry Ford's chief financial officer, said in a statement that the labor shortage has forced the system to engage in retention, schedule adherence and other premiums to ensure it has adequate staffing in critical roles like nurses, technicians and customer service, environmental services and dietary workers.

    Henry Ford's supply expenses increased even more—by 18%—year-over-year. Damschroder said 2021's uptick in COVID cases was the biggest contributor, including the continued need for pandemic-related supplies. The return of elective surgeries also played a role. One thing that wasn't a big factor: the global supply chain disruptions that are causing price hikes elsewhere. Henry Ford said that hasn't been a big issue for the system yet, but it's bracing for higher prices, shortages and delays in the near future.

    Another expense that grew dramatically in the 2021 period was the amount Henry Ford's health plan paid for members' care. That line item shot up almost 15% in the 2021 period. Henry Ford said pent-up demand for outpatient and professional services accounted for more than half of the increase. The rest was costs associated with Medicare Advantage and Medicaid membership and those related to treatment, testing and vaccines for COVID-19. To the last point, Damschroder said the health plan has spent $100 million year-to-date on COVID treatment and testing.

    Henry Ford's revenue grew at less than half the rate of expenses in the nine months ended Sept. 30, just 4.7% year-over-year. Within that, net patient service revenue increased 18.5% due to volume increases that reflect the recovery from 2020's pandemic-induced volume declines. Outpatient surgeries grew 29.4% year-over-year, and inpatient surgeries grew 10%. Emergency room visits were up 7% in the 2021 period, and discharges were up 4.2%. Meanwhile, virtual visits declined almost 18%.

    "New mutations of the virus and low consumer confidence levels may continue to impact the System's revenue throughout the balance of 2021," Henry Ford wrote in its financial release.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Dr. Joseph Cacchione
    Jefferson Health consolidates organization amid financial challenges
    Cliff's Notes book club
    Health system’s book club opens new chapter on staff engagement
    Most Popular
    1
    More healthcare organizations at risk of credit default, Moody's says
    2
    Centene fills out senior executive team with new president, COO
    3
    SCAN, CareOregon plan to merge into the HealthRight Group
    4
    Blue Cross Blue Shield of Michigan unveils big push that lets physicians take on risk, reap rewards
    5
    Bright Health weighs reverse stock split as delisting looms
    Sponsored Content
    Modern Healthcare A.M. Newsletter: Sign up to receive a comprehensive weekday morning newsletter designed for busy healthcare executives who need the latest and most important healthcare news and analysis.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Opinion
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • Data Center
      • Data Center Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing