Bon Secours Mercy Health losses to exceed $1 billion in 2022

Bon Secours Mercy Health reported a net loss of $1.2 billion in 2022, compared to a profit of $997.7 million the previous year, the Catholic non-profit health system said this week. This change was largely driven by lower investment returns amid financial market troubles.

Cincinnati-based Bon Secours Mercy’s revenue rose 2.1% to $11.1 billion, while operating expenses rose 6.8% to $11.43 billion. Spending related to workers’ compensation alone jumped 9.6% to $5.93 billion. In addition to the workforce, many health care systems across the country are struggling with inflated prices for supplies and pharmaceuticals, as well as lost revenue due to fewer hospitalizations.

The system’s investment losses for 2022 were $925.33 million.

Bon Secours and Mercy Health merged in 2018 to form a system of 48 hospitals and over 1,200 healthcare facilities across seven states in the US and Ireland.

Bon Secours Mercy did receive $119.2 million from further reducing its stake in Ensemble Health Partners’ revenue cycle management operation after it had already sold a majority stake in Golden Gate Capital in 2019. Another $58.3 million was raised from the sale of several senior housing units in Ohio, part of the System’s Move Away from Skilled and Nursing Care.

To cut financial losses, Bon Secours Mercy said it has begun cutting jobs and costs associated with purchased services. By the end of the year, operating cost savings are expected to be about $280 million. More details about this year’s cost-cutting efforts were not immediately available.