CHI cuts quarterly operating loss by more than half

Catholic Health Initiatives cut its operating loss by more than half in the quarter ended Sept. 30, reporting a loss from operations of $77.9 million in its first fiscal quarter for 2018.

That is 56.9% less than the loss on operations of $180.7 million reported for the year-earlier quarter.

The Englewood, Colo.-based system reported operating earnings before interest, depreciation and amortization of $222.8 million in the most recent quarter, more than double the year earlier total of $91.6 million. After taking out the costs of restructuring, impairment and other losses, operating EBIDA climbs to $237 million, up from $135 million in the year-earlier quarter.

CHI officials attributed the improved results to significant savings in supplies and labor costs. "We did not expect an organizational turnaround to be quick or easy—but we have made substantial progress in recent months and expect that trend to accelerate throughout this fiscal year," said Dean Swindle, CHI's president for enterprise business lines and chief financial officer, in . "We've taken all the necessary steps in our transformation to a higher-performing organization—and we certainly expect the numbers to reinforce that as we move through the 2018 fiscal year."

Negotiations to possibly align CHI with Dignity Health, based in San Francisco, remain in the final stages, and the two are "pleased with the progress to date," according to its quarterly financial report.

Paul Barr

Paul Barr, a healthcare journalist since 2004, is responsible for Project Japan’s feature stories. Barr most recently was a senior editor for Hospitals & Health Networks, but before that worked six years at Project Japan as news editor and two years as a reporter. In 2016 he won a Jesse H. Neal award for best single story, and in 2015 was a finalist for best series. Prior to 2004, he covered financial matters for various publications. Barr has a bachelor’s degree in economics and master’s degrees in journalism and business from the University of Illinois.

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