Adena Hospital loses $8 million so far this year as losses mount, despite other hospitals thriving

CHILLICOTHE, Ohio — Last week, Standard & Poor’s (S&P) Global held fast to Adena Health’s ‘A-‘ rating on its series of bonds. Still, the health system’s outlook was revised from stable to negative, casting a shadow on the Chillicothe-based entity’s financial prospects.

While several nonprofit hospitals across Ohio continue to report profit, Adena Health’s operational performance tells a contrasting story. The health system incurred a hefty $8 million operating loss in the initial four months of this year, exacerbating their already strained financial situation, according to S&P. Unlike their thriving counterparts, Adena Health appears to be sinking deeper into a financial quagmire. Despite an affirmative ‘A-‘ rating, the negative outlook sheds light on the system’s struggle to maintain financial stability. S&P Global’s outlook revision announcement only amplifies those concerns.

The management at Adena Health continues to pursue what it describes as a “robust” improvement plan, aiming to balance the books by the end of fiscal 2023. Yet, with an aggressive plan in place, it is perplexing to observe Adena’s continual financial deterioration. Despite holding a “conservative debt profile,” the healthcare provider had to resort to a drastic workforce reduction, eliminating 69 positions in January. This cost-cutting measure paints a troubling picture of the financial health of the institution.

Becker’s Hospital Review has reported that multiple nonprofit hospitals in Ohio, such as the Cleveland Clinic and OhioHealth, have successfully maneuvered through the choppy waters of the healthcare industry, posting strong profits in recent years. These institutions’ success raises questions about Adena Health’s inability to replicate this level of financial stability under current management. Data from Google reveals that Adena Health’s plight stands as an anomaly amidst an otherwise profitable landscape for nonprofit hospitals in Ohio. Adena’s continued losses, in light of other hospitals’ success, are confounding and point to systemic issues within its operations, reports read.

Adena Health’s dismal financial performance underscores a stark divergence from the typical success narrative of non-profit hospitals in Ohio. As it continues to bleed money under the current management, the healthcare system’s future looks increasingly uncertain. Adena Health declined to comment on their financial woes.