Beaumont Health also saw its operating revenues fall by $122.4 million year-over-year.
Beaumont Health's net income fell by $60.6 million last year largely due to the effects of the COVID-19 pandemic, the Michigan-based health system announced Monday.
Beaumont said that it faced significant volume decreases affecting "inpatient discharges, observations, births, emergency visits, surgeries, and physician encounters."
The health system had a net operating income of $176.6 million in 2020, down from $196.3 million in 2019. The organization also reported that operating revenues fell by $122.4 million year-over-year, though this was offset by payments received through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The health system received $505 million in Medicare Advance Payments, according to a press release.
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Beaumont's non-operating income for the year was $162.7 million, down from $205 million in 2019.
C-suite perspective:
"The effects of the pandemic are expected to continue into 2021 as Beaumont has cared for more COVID-19 patients than any other health care system in Michigan," John Kerndl, CFO of Beaumont, said in a statement. "The Beaumont team remains focused on leading through the COVID-19 pandemic and providing low cost, high-quality care as demonstrated by our designation of 19 national rankings by U.S. News and World Report. Though surgeries, diagnostic services and Emergency Center visits are recovering, they are not back to pre-COVID-19 levels."
The system's year-end financial performance was released months after the Detroit Free Press reported that Beaumont paid CEO John Fox a $2.6 million bonus the same day that it received its first patient infected with COVID-19.
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The organization did have a few bright spots regarding its financial metrics.
Beaumont ended the year with $3.49 billion in cash and investments, up from $2.27 billion in 2019, 307.3 unrestricted days cash on hand, and total debt of $1.47 billion, down slightly year-over-year.
The system also mentioned that Beaumont's ACO generated $27.8 million in gross savings for contract year 2019.
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Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: Royal Oak, Mich./USA-7/25/19: Beaumont Hospital sign on Woodward Ave. in suburban Detroit. / Editorial credit: Daniel J. Macy / Shutterstock.com