Memorial Sloan Kettering Cancer Center posted more than $164 million in operating income last quarter, marking a recovery from last year’s losses due to increases in revenues from outpatient treatments, chemotherapy and surgeries.
The Upper East Side oncology center earned more than $2 billion in total revenue in the fourth quarter of 2023 — an 8% increase from the previous year, according to financial documents released Monday. Rising patient services revenue boosted total earnings, with hospital care and patient services bringing in $1.6 billion during the fourth quarter.
Memorial Sloan Kettering’s quarterly financial performance was a reflection of its annual operations. The health system brought in more than $7.4 billion in total revenue in 2023, an increase driven by a nearly 13% increase in earnings from patient care compared to 2022. Outpatient visits surged 11% year-over-year, while surgeries, radiation oncology and chemotherapy treatments rose by roughly 8% each.
Research and clinical trial grants and contracts also grew by $47 million from the previous year, the documents show.
Memorial Sloan Kettering earned $134 million in operating income in 2023, recovering from a more than $230 million loss in 2022. Hospital management said that operating income in 2023 marked a “significant improvement,” adding that the system enhanced efficiencies in patient care while controlling operating costs.
Total expenses declined by less than 1% in the fourth quarter, representing a shift from the significant expense growth that hospitals have faced in the wake of the pandemic. Memorial Sloan Kettering spent $938 million on wages and benefits in the last three months of 2023, a slight drop from the same time the previous year.
Despite quarterly declines, total annual expenses grew. Total costs in 2023 surpassed $7.2 billion, up 5% from 2022. Hospital management said rising expenses come with rising patient volume, noting that most expense growth was associated with purchases of additional pharmaceuticals and medical supplies. Other costs included a one-time, $10.9 million expense associated with the layoff of 337 workers in January 2023.
Memorial Sloan Kettering has nine patient care locations in the New York City area, including transfusion centers and outpatient locations. The hospital system employs more than 20,000 physicians, scientists, nurses and other health care workers.
Amanda D'Ambrosio , 2024-04-16 11:33:05
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