Introduction

Temple University Health System's Financial Challenge– Annual operating loss of $64 million for the fiscal year ending June 30, 2023 First annual operating loss since 2014

– The absence of substantial COVID-19 aid from the federal government – $204.4 million in federal aid contributed to previous years' operating profit – A shift in financial dynamics

Financial Impact

Revenue Growth

– Annual revenue increased to $2.65 billion – A 3.8% increase compared to $2.55 billion in fiscal 2022 – The previous year had an operating profit of $70 million, including $40 million in federal relief funds

2

Reasons for Operating Loss

– Factors contributing to the significant swing to an operating loss – Higher expenses due to outside agency staff and overtime – A 6% decrease in the number of inpatients at Temple's hospitals (excluding Chestnut Hill Hospital)

– Temple's acquisition of Chestnut Hill from Tower Health in January for $28 million – Chestnut Hill's operating loss of $12.4 million from January through June – The challenges associated with integrating a new facility

: Chestnut Hill Acquisition

Impact on Temple Health System

– The financial implications of Chestnut Hill's operating loss – Strategies to address the financial setback – Ensuring the sustainability of Temple's health system

Future Outlook

– Temple officials' response and actions moving forward – The importance of the upcoming conference call with investors – Plans to navigate the financial challenges ahead

– Potential effects of the financial situation on patient care and community services – Maintaining commitment to serving the North Philadelphia community – Mitigating any adverse consequences on healthcare access

Community Impact

Conclusion

– The significance of Temple University Health System's operating loss – The evolving landscape of healthcare finances – The need for adaptability and resilience in healthcare management