Cleveland Clinic saw its operating income drop in 2020 amid the COVID-19 headwinds experienced across the industry.
Cleveland Clinic ended the year in the black with an operating income of $232.4 million in 2020. But that was down 40% from its operating income of $390.2 million a year earlier, according to its unaudited financial statements released Friday. The health system ended the year with its top line up slightly, reaching $10.63 billion compared to revenue of $10.59 billion a year earlier.
Still, it was a stronger end to what began as a rocky financial year for the health system giant. Cleveland Clinic posted an operating loss of $241 million in the first half of 2020 as patient revenue took a major hit.
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Among the headwinds, the health system reported increased expenses for labor and supplies in 2020.
The health system shored up its liquidity by obtaining lines of credit totaling $650 million with multiple financial institutions. As of Dec. 31, 2020, the system had no amounts drawn and $650 million in available capacity.
The health system association saw its investment income as well as gifts to the health system grow. Cleveland Clinic reported $82.9 million in net investment income last year, up from $72.1 million a year in 2019. It reported $132.4 million in gifts and bequests in 2020, up from $128,500.
The health system ended the year with more than $21.8 billion in total assets, including more than $1 billion in cash and cash equivalents. That was up from about $20 billion in total assets, or $505.7 million in cash and cash equivalents, in 2019.
Cleveland Clinic did get relief funding to help offset losses, recognizing $423.3 million in payments from the $175 billion CARES Act fund in 2020 as well as $28.4 million in employee retention fund money.
The system also got at least $849 million in payments under the Centers for Medicare & Medicaid Services’ Accelerated and Advance Payments program.