Financial Update: Temple University Health System

Temple University Health System recently reported an operating loss of $23.3 million for the nine-month period ending on March 31, a significant improvement from the $53.2 million loss during the same period the previous year. This update was shared with investors by the North Philadelphia nonprofit on Wednesday. The financial results also revealed a $12.5 million loss at Chestnut Hill Hospital, which Temple acquired with two partners at the beginning of 2023.

In terms of revenue, Temple’s total revenue for the first three quarters of fiscal 2024 was $2.08 billion, marking an 8.9% increase from $1.91 billion in the previous year. Significant gains in inpatient discharges from Temple’s hospitals were partially offset by a decrease in lung transplants, attributed in part to a shortage of certified registered nurse anesthetists in the region.

While Temple continues to face high costs for overtime and contract staff, these expenses have decreased slightly since peaking during the pandemic. In the first nine months of fiscal 2024, these costs totaled $50 million, down from $69 million in the previous year. CEO Mike Young expressed optimism about the financial performance of Chestnut Hill Hospital, stating that he expects it to become profitable by the end of fiscal 2025