Attleboro, MA (December 18, 2023) – Sturdy Health today announced its financial results for the 2023 fiscal year ending September 30, 2023. The Attleboro-based independent health system recorded a total net gain of $17.2 million.
Sturdy Health’s total financial results are a combination of a strong investment/non-operating gains of $41 million, and the early success of its strategic financial recovery efforts which yielded $9.9 million savings in FY23. These advances are despite the continued operational challenges faced by healthcare organizations.
Sturdy Health’s FY23 operating finances were negatively impacted by $16 million in uncompensated care, which increased 33% from FY22, and $8 million in contract labor costs needed to care for patients amidst the national workforce shortages. These factors, along with the increase in supply and pharmaceutical costs, contributed to an operating loss of $24.7 million.
“These past few years have tested health systems throughout the region and across the country,” said Aimee Brewer, president and chief executive officer of Sturdy Health. “At Sturdy, we have remained focused on caring for our team members and our community. That work has resulted in a $17 million total income that will be used to improve the health of this region and the long-term health of our system.”
In 2023, Sturdy maintained its commitment to preserving and increasing services for the community while some health systems, unfortunately, had to cut back or close services. Sturdy Health also delivered critical services for vulnerable populations, including those impacted by the refugee crisis.
Demand for Sturdy Health’s services remains strong throughout Southeastern Massachusetts, including increases in emergency department visits (+5%/51,198), surgeries (+12%/5,591), and primary care and specialty care visits (+3%/315,000).
Sturdy Health recognizes the importance of its talented and compassionate team members and invested $221 million in salaries, wages and benefits. This represents a $9 million increase over FY22.
“The financial headwinds for health systems were strong in 2023. We all worked diligently to recover from the devastating impacts of the pandemic, including higher expenses, high contract labor costs, and longer patient length of stays due to throughput challenges,” said Amy Pfeffer, chief financial officer of Sturdy Health. “We made important progress in improving our operating results, and I am confident in our strategic plan to make even greater strides in 2024.”
To continue its operational improvements in FY24, Sturdy Health plans further focus on employee retention, reductions in contract labor and improvements in throughput to ensure appropriate lengths of stay. The health system recognizes that expanding to meet the growing needs of the community will ensure that people get the care they deserve, and that Sturdy will have long-term success. Expansions in FY24 are planned for orthopedic and spine care, cardiology, vascular surgery and women’s health, allowing more people to receive expert care closer to home. Sturdy Health recently broke ground on a $50 million Cancer and Specialty Care Medical Office Building that will improve access to care, as well as increase operating efficiencies.
“The resiliency of the Sturdy Health team is truly inspiring. We are so proud to work together to be a trusted resource for this community,” said Brewer. “I am looking forward to continuing our commitment to the region, and to the long-term health of this 110-year-old institution, as we grow and improve in 2024.”
About Sturdy Health
Established on April 14, 1913, Sturdy Health is an independent, not-for-profit health system comprised of a 126-bed acute care hospital, 26 primary and specialty care medical offices and an Urgent Care Center dedicated to providing a broad range of healthcare services to the residents of communities in Southeastern Massachusetts and neighboring Rhode Island. Sturdy’s mission is to improve the health and well-being of the people in our communities through kindness, compassion and convenient access to the highest quality care.
For media Inquiries, please contact:
Justine Zilliken | VP + Chief Strategy Officer |Media@SturdyMemorial.org |M: (702) 810-5616
