Case study: Baptist Health loses $25M due to investment losses

It's just another lonely day for hospital investment funds, which continue to struggle despite early signs that the economy might be turning around just a bit.

One example comes from formerly prosperous non-profit Baptist Health South Florida, a Miami-based healthcare provider whose operating income was totaled by its investment losses. Baptist just announced that it lost $24.8 million on operating revenue of $530.2 million in its second quarter ending March 31.

While the non-profit earned $30.7 million in the second quarter from operations of its five hospitals and other facilities, that was more than canceled out by a $49.1 million realized investment loss, in addition to other accounting charges.

While the new numbers are an improvement from its loss of $26.8 million on operating revenues of $470.2 million in the same quarter last year, they aren't good, either.

That being said, you don't need to cry for Baptist, either. The health system still had $1.26 billion in net assets as of March 31, a strong base, though down from $1.48 billion at the same time last year.

To learn more about Baptist's situation:
- read this piece from the South Florida Business Journal

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