Lifespan reports $49M net loss for the third quarter

PROVIDENCE, R.I. (WLNE) — Lifespan Healthcare reported a $49 million net loss for the third quarter ending June 30.

“The health care system in Rhode Island is in crisis,” stated a news release from Lifespan reporting the financials.

The release said Lifespan’s operating loss and net loss for the first nine months of 2022 is $69.5 million and $142 million respectively.

“Lifespan is not alone, as hospitals across the country continue to be financially challenged by the labor shortage, increased cost of supplies and overall inflation, and lower than typical patient volume, particularly due to a decline in elective surgeries and bed closures,” read in part a news release from the hospital system.

Lifespan did receive nearly $21 million in ARPA funding, but are not expecting additional assistance, according to the release.

“Additionally, the vast majority of our additional costs are related to outside factors over which Lifespan has limited control and we are not able to unilaterally raise rates with health insurers or the federal government to address these losses,” the release continued.

Lifespan leaders said they are working to address the financial shortfall by building out their talent pool, recruiting additional staff, decreasing their reliance on contract labor, and resuming elective surgeries.

Earlier this year, a proposal to merge Lifespan and Care New England, the two largest hospital systems in the state, was shot down by regulators.