Cone’s financial health improves due to gains in investment portfolio

Cone Health, a prominent healthcare system in Greensboro, has reported a significant increase in excess revenue over expenses for the first half of fiscal 2023-24. The healthcare system saw a remarkable $138.3 million in excess revenue, a substantial jump from the $73.5 million reported during the same period in the previous fiscal year.

The boost in revenue can be attributed to Cone Health’s strong investment portfolio, with the healthcare system reporting $99.8 million in investment income, compared to $84.1 million the year before. Additionally, Cone also reported $4.8 million in “other income” and $3.2 million in income from a joint venture.

Operating revenue for Cone Health rose by 11% to $1.48 billion, with notable increases in net patient service revenue, premium revenue, and other operating revenue. However, expenses also saw an 8.8% increase to $1.45 billion, with notable increases in salaries, wages, fringe benefits, and expenses for contract personnel.

Cone Health also received a “remedy payment” from the federal Centers for Disease Control and Prevention for 340B underpayments, as well as FEMA-obligated reimbursements. The 340B program, aimed at assisting hospitals serving vulnerable communities, has become a significant source of financial support for healthcare systems like Cone Health.

Despite industrywide financial challenges, Cone Health remains optimistic about its financial outlook, with expectations of additional revenue from Medicaid-related HASP revenues later in 2024. The healthcare system continues to serve the community with a rise in emergency department visits, outpatient visits, and surgical procedures.