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Exceptional Care That Transforms.

Memorial Health System Announces Audited Fiscal Year 2023 Operating Results

The health system experienced a $33.7 million increase in net income year over year

GULFPORT, Miss. – January 31, 2024 – Memorial Health System has released its audited fiscal year (FY) 2023 operating results, revealing a remarkable financial turnaround largely driven by improvements in revenue cycle, throughput and length of stay (LOS) management, labor, and medical supplies expense. These areas contributed approximately $44 million in expense improvement and nearly $25 million in net patient revenue enhancements, year over year.

For the fiscal years ending 9/30/23 and 9/30/22, Memorial recognized a net income of $19.8 million and a net loss of ($13.9) million, respectively, representing an increase of $33.7 million. For the FY ending 9/30/21, Memorial realized a net loss of ($64.1) million, representing an $83.9 million improvement compared to FY 2023.

Memorial Health System President and CEO Kent Nicaud reflects, “We implemented difficult but necessary steps to ensure the long-term sustainability of our health system, without eliminating services or decreasing patient care quality and safety. Our commitment to providing exceptional care to our community remains unwavering.”

Salaries and wages declined by more than $38 million in FY 2023, with contract labor declining by $7 million, from $15 million in FY 2022 to $8 million in FY 2023. Several initiatives led to the turnaround in labor expense, including the implementation of labor productivity metrics, LOS management initiatives, and a workforce reduction that largely affected non-clinical labor, representing less than 2 percent of the total workforce. Medical and other supplies, excluding drugs, decreased by $7.5 million, or by 8.3 percent, year over year.

“Rarely do you see such an impressive financial turnaround in one year, especially with all the labor and inflationary headwinds in the current healthcare environment,” adds Memorial Health System Chief Financial Officer William Barrette. “The financial results are impressive, and we’re recognizing the hard work and sacrifices many have made over the last year and a half. However, the focus of this organization is now centered on creating a culture of financial rigor and accountability to sustain the financial results we’ve achieved that will allow us to continue investing in our facilities, equipment, and most importantly, our people.”

Volumes in FY 2023 were very strong, with admissions rising by 2.2 percent year over year, while patient days declined by 6.2 percent, driven by a near half-day reduction (0.45) in average length of stay (ALOS). Emergency Department visits increased by 7.6 percent, while deliveries sky-rocketed, increasing nearly 37 percent.

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ABOUT MEMORIAL HEALTH SYSTEM

Memorial Health System has been serving the Mississippi Gulf Coast since 1946. Located in Gulfport, Mississippi, Memorial is a not-for-profit medical complex jointly owned by the City of Gulfport and Harrison County. Memorial includes two hospitals licensed for 328 beds, a state-designated Level II Trauma Center, two nursing centers, four outpatient surgery centers, satellite outpatient diagnostic and rehabilitation centers, and more than 100 Memorial Physician Clinics. Memorial offers several of the region’s most comprehensive clinical programs and medical specialties unique to the area, including the Coast’s only Level III Neonatal ICU and Mississippi’s first nationally-certified Primary Stroke Center. Visit wearememorial.com to learn more.

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