CHI Would Bring $483M Operating Loss Into Merger Deal With Dignity
But Dignity is dealing with its own financial problems as well, having posted an operating loss of $63 million on $12.6 billion in revenue at the end of its fiscal year in June.
CHI Takes $483 Million Operating Loss Into Dignity Merger Talks
Catholic Health Initiatives is bringing an operating loss of $483 million from its fiscal 2016 to its merger talks with Dignity Health, CHI reported in its year-end earnings statement Monday. The operating loss in fiscal 2016, which ended June 30, compared with an operating surplus of $24 million in fiscal 2015. CHI, the nation's third-largest not-for-profit hospital company by revenue, attributed the losses to “lower patient volumes, higher labor costs, increased pharmacy prices and reduced reimbursement in Medicare and Medicaid.” The Englewood, Colo.-based health system also struggled to manage the red ink from its health insurance business, which CHI plans to sell. (Barkholz, 11/28)