Following a merger with Excela Health, the Butler Health System is still seeing significant financial losses.
For the last fiscal year ending in June, the Butler Health System reported an operating loss of $43.2 million. That’s almost double the losses compared to the previous fiscal year.
The losses are driven in part by higher labor costs, along with growing operating expenses. According to the BHS, their expenses were nearly $440 million, while income was just over $396 million.
A statement from the health system reads: “Butler Memorial Hospital, like all hospitals in the region, recognizes the challenges facing our industry and their impact on financial performance. We have embarked on a host of initiatives to drive both greater operational efficiencies and institute expanded or enhanced clinical programs to increase utilization. We are confident these measures, as well as others, will have a positive impact on the finances of the organization.”
Since the launch of Independence Health System in January, the combined operational losses of Butler and Excela are over $79 million.
