UMass Memorial Health Care, Inc. in Worcester reported a $38 million operating loss in fiscal 2022, according to a financial report filed on December 15 and obtained from the Massachusetts State Division of Finance.
Operating revenues at the hospital system were $3.5 billion, up 11% over last year, while expenses rose 15%. In fiscal 2021, the health care system saw $65 million in gains.
“Like other health care providers throughout the Commonwealth, we are experiencing unprecedented financial challenges. Not only are costs going up across the board for medical supplies and utilities, but labor costs continue to be our biggest expense” said Sergio Melgar, executive vice president and CFO at UMass Memorial Health, in a written statement on Friday.
“In the year ahead, we will continue our work to strengthen our balance sheet by reducing our reliance on temporary labor and seeking higher Medicaid and commercial payor reimbursement rates,” Melgar continued. “We will maintain our investment in our workforce and the delivery of exceptional, compassionate care to the patients we serve.”
Elsewhere in Central Massachusetts, the Milford Regional Medical Center saw a $13.7 million operating loss in fiscal 2022 ending Sept. 30, compared with an $11.9 million loss in 2021 according to financial disclosures.
Local hospitals including the UMass system and Saint Vincent Hospital in Worcester experienced negative margin growth in the period from March 2021 to March 2022, according to a report by the Center for Health Information Analysis.
UMass Memorial Health Care system has $3.5 billion in assets as of Sept. 30, 2022, according to the disclosure. It is the largest employer in Central Massachusetts with more than 17,000 staffers.
