Lourdes Health System’s operating loss widened to $22.43 million in the year ended June 30, 2017, from a loss of $4.6 million the year before, according to financial statements issued by the nonprofit health system’s parent company, Trinity Health.
In addition, Trinity recorded a $35.5 million write-down on Lourdes in anticipation of the sale of the Camden-based system, which also has a hospital in Willingboro.
Under a preliminary deal announced in August, Cooper Health System is expected to acquire Lourdes, as well as St. Francis Medical Center in Trenton. Trinity took a $37.3 million write-down on St. Francis.
Lourdes attributed the bigger loss in fiscal 2017 to changes in the health-care market.
In an email, spokeswoman Carol Lynn Daly said Wednesday Lourdes was “making great progress” in shifting toward a business model based on outcomes rather than frequency of procedures, doctor visits, and hospital stays. “However, we have been subject to cuts in state Charity Care funding and increased costs related to physician coverage.”
In all, Trinity’s Philadelphia-area health systems, which also include Mercy Health System of Southeastern Pennsylvania in Conshohocken, St. Mary Medical Center in Langhorne, and St. Francis Healthcare in Wilmington, had $2.1 billion in total revenue in fiscal 2017, up 1.3 percent.
While the New Jersey and Delaware systems lost money, Trinity’s operations in Southeastern Pennsylvania were profitable.
Total revenue at Mercy, which has three hospitals, was up 5 percent, to $712 million, and its operating income soared to $33.3 million from $24.4 million. At St. Mary, total revenue fell 1 percent, to $535.9 million, and operating income dropped to $17.3 million from $26 million.
Trinity is based in Livonia, Mich., and is among the largest nonprofit health systems in the United States.