In the six-month period ended June 30, Falls Church, Va.-based Inova Health System recorded a net loss of $253.1 million, according to recently released financial results.
The system posted a $550.7 million net income in the same period in 2019.
The loss was primarily driven by a $292.5 million investment loss in the first half of 2020, as well as a decline in patient volume due to the COVID-19 pandemic. Overall, Inova saw a net margin of negative 15.8 percent for the six months ended June 30, compared to a net margin of 24.3 percent in the same period last year.
Inova Health saw its operating revenue reach $1.9 billion in the first half of 2020, up from $1.8 billion in the first half of 2019. The 3.8 percent increase was primarily driven by provider relief aid, the system said.
Net patient service revenue decreased 3.4 percent to $1.7 billion year over year, as volume declined as a result of the COVID-19 pandemic and related governmental mandates to suspend elective care.
Inova said the increase in revenue was primarily driven by the $94.5 million in federal aid it received under the Coronavirus Aid, Relief, and Economic Security Act.
The health system saw its expenses in the first half of the year hit $1.9 billion, an increase of 8.1 percent compared to the same period in 2019. Inova said salaries and benefits increased $85.5 million due to merit- and market-based pay adjustments and a need to increase staffing to support patient volumes early in the second quarter. In addition, the system incurred additional costs to buy medical supplies and respond to the pandemic.
Inova recorded an operating income of $44.2 million through the first half of 2020. This compares to an operating income of $113.8 million in the same six-month period in 2019.
Access the full report here.
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