Sentara Healthcare Bounces Back From The Losses of COVID-19
The COVID-19 pandemic has stretched the resources of every healthcare organization to its limit and then some more. A lot of organizations incurred sudden and devastating losses and they were backed into a corner and forced to close shop, having no other way to manage the losses. Sentara Healthcare fortunately found its financial salvation in their Health Plan.
Per the recently disclosed financial documents, the 12 hospital system based in Norfolk, Virginia, had a consistently profitable year until 2020. In the wake of COVID-19, their stellar record took some sizable damage and ended the first half of 2020, with a net loss.
The healthcare organization ended their first two quarters of 2020 with an operating income of $159.4 million, which is significantly down from their $230.5 million in the same period in 2019. Also, after factoring in nonoperating items, the health system reported a net loss of $38.7 million for the first half of this year, compared to net income of $569.4 million in the same period of 2019.
Sentara Healthcare Effectively Handling COVID-19
Up until June 30, 2020, the health system reported revenues of $3.9 billion, which is up 16.2 percent from a year earlier. This was possible because of the increased premium and capitation revenue, which was made possible by year-over-year growth in health plan membership. However this growth took a slight downward dive of 9.2 percent in net patient service revenue.
The health system also claims that their operating expenses increased 20 percent year-over-year in the first half of 2020. This increase can be directly attributed to higher medical claims expense and costs tied to the COVID-19 pandemic.
