Key Takeaways
- Fiscal 2021 medians are the strongest in nearly a decade. Despite significant operational and financial volatility over the past two fiscal years, overall financial performance and balance sheet medians are generally the strongest we have seen over the past decade.
- COVID-19 relief funding provided significant support. Financial performance and unrestricted reserves were supported by the receipt and recognition of considerable provider relief funds. Without this support, performance would have been considerably weaker, albeit still positive.
- Net patient service revenue rebounds. Steady volume recovery contributed to net patient service revenue materially rebounding in 2021 after a decline in 2020, while total operating revenue continued to grow.
- Strengthening balance sheets lend stability. Almost all median balance sheet ratios improved with another healthy year of investment performance coupled with management actions to preserve funds during the pandemic and receipt of material government support.
- Expense and macroeconomic pressures are expected to affect future performance. Wage and related inflationary pressures began to escalate in the second half of 2021 and likely will cause a drag on performance for the remainder of 2022 and going into 2023 for many organizations.
24 Aug, 2022