Recent Butler Health System report shows smaller financial loss
A Friday report issued by Butler Health System says it sustained a smaller financial loss as compared to what was recorded over the same period last year by reducing expenses.
According to the numbers for the third financial quarter, released on Friday morning, Butler Health System’s consolidated group saw an operating loss of $23.81 million for the 9 month period ended March 31. While this is still a loss, this marks an improvement of roughly 25% over that same 9 month period last year, when Butler Health posted an operating loss of $32.16 million.
“While we are pleased with the progress to date, we will not be satisfied until all of Independence Health System is producing reasonable operating profits, while continuing to provide high-quality, expert care to our patients,” said Tom Albanesi, chief financial officer of Independence Health System — the merged entity Butler Health became part of in 2023.
For the 9 month period ended March 31, the hospital system brought in $340.71 million in revenue, a decrease from the $347.33 million from the previous year’s period. However, the hospital also recorded less expenses than in the previous year — $364.52 million in expenses compared to the $379.49 million from the previous year.
As of March 31, Butler Health System holds $451.73 million in assets and $227.11 million in liabilities.
Butler Health System’s report lists two sets of numbers in its quarterly financial statements, the obligated group, which is used by lenders, and the consolidated group, which is expanded to include entities such as the Butler Health System Foundation. The numbers above reflect the consolidated group.
At the start of 2023, Butler Health System merged with Westmoreland County-based Excela Health to form Independence Health System. For logistical reasons, the two systems file separate financial reports for the time being.
Butler Health System is in the middle of implementing a financial improvement plan which aims to identify millions of dollars of cost-saving opportunities while setting targets for recovery.
“The financials for the quarter ended March 31, 2024, reflect the over 100 initiatives being implemented to improve our financial performance,” Albanesi said.
In the previous quarterly report, Butler Health estimated it would have 96.7 days worth of cash on hand by the end of the third fiscal quarter. The most recent quarterly report indicates that it finished with 107.1 days worth of cash on hand.
Meanwhile, Excela Health posted a loss of $20.94 million for the 9 month period ended March 31 — an improvement over the $29.37 million loss it posted over the same period 12 months earlier.
According to Albanesi, Excela included professional fees in salaries and wages in its reports. He said the health systems would have identical financial statement groupings beginning in fiscal year 2025.
