Temple University Health System cut its operating loss in last six months of 2023

Temple University Health System trimmed its operating loss to $75.3 million in the last six months of 2023, compared to a loss of $103.1 million the year before, the North Philadelphia nonprofit said Wednesday in a report to bondholders.

The health system’s revenue rose 8% to $1.26 billion, thanks largely to increases in its outpatient pharmacy business. The number of patient visits climbed in most of the medical services Temple reports, also boosting revenue. Total expenses were up 5%, allowing Temple to reduce its operating loss.

But Temple performed fewer organ transplants, a lucrative area where patient volumes dropped to 175 in the six months ended Dec. 31, from 180 the year before.

Temple’s cash reserves totaled $834.7 million on Dec. 31, down from $888.3 million the year before, despite the addition of $65 million in borrowings from a line of credit. The reserve amount fell to 119 days of operating cash, down from 132 on Dec. 31, 2022. Days of cash reserves are down across the industry because of persistently higher expenses since the pandemic.

Detailed financial results for Chestnut Hill Hospital — which Temple acquired at the beginning of 2023 in a partnership with Philadelphia College of Osteopathic Medicine and Redeemer Health — were not included in the report.

But Temple provided statistics on patient volumes for the 148-bed Philadelphia hospital. They showed inpatient admissions were down nearly 6% in the last six months of last year, compared to the last six months under previous owner Tower Health. On the plus side, emergency department visits were up 6%, while inpatient and outpatient surgeries each jumped by 27%.

Children’s Hospital of Philadelphia bucked the trend of large Philadelphia-area health systems reporting bigger gains in revenue than in expenses. CHOP’s operating profit in the six months ended Dec. 31 fell to $39.2 million from $96.2 million the year before, it reported Tuesday. The nonprofit’s total revenue rose a strong 9.7% to $2.2 billion, but its expenses were up more, by 13%.

Doylestown Health reported an $8 million operating loss in the second half of 2023, down from nearly $20 million the year before. Its total revenue rose slightly, to $216.8 million from $216.2 million. The University of Pennsylvania Health System announced in December a preliminary agreement to acquire Doylestown, which operates a 247-bed hospital.

Redeemer Health, one of Temple’s partners at Chestnut Hill Hospital, reported an operating loss of $21 million, about the same as in the last six months of 2022. Its total revenue fell 5% to $222 million. Redeemer owns the 239-bed Holy Redeemer Hospital in Meadowbrook, Montgomery County.