Allina Health operating loss grows to $85M in Q2

Allina Health’s revenue declined year over year in the second quarter of 2020, and the Minneapolis-based health system ended the period with an operating loss, according to recently released financial documents.

Allina’s revenue declined 15 percent year over year to $927 million in the second quarter of 2020, which ended June 30. The health system revenue was down 8.2 percent for the first half of this year. The decline was attributed to reduced patient volumes during the suspension of elective procedures earlier this year and the unrest experienced in Minneapolis and St. Paul, Minn., in the aftermath of the death of George Floyd. 

The health system has received government assistance to help offset revenue losses tied to the pandemic. As of June 30, Allina had received $108.4 million in aid from the state and the federal government. The system received an additional $51 million in federal grants in July.  

Allina’s operating expenses declined 8.4 percent year over year, and it ended the second quarter of 2020 with an operating loss of $85 million. In the second quarter of 2019, the system posted an operating loss of $14.4 million. 

After factoring in nonoperating items, including a $156.2 million gain on investments, Allina ended the second quarter of this year with net income of $67.3 million. In the same period a year earlier, the system posted net income of $25.8 million. 

As of June 30, the health system had 248 days of cash on hand. 

More articles on healthcare finance:
Steward, medical billing company accused of illegal ‘revenue enhancement’ scheme
CMS unveils new payment model for rural hospitals: 10 things to know
Mass General Brigham expects up to $1.5B drop in patient revenue this year

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.