Catholic Health on Long Island ended last year slightly in the red as hospitals brace for potential impacts of cuts to federal aid, a recent financial statement shows.
The Rockville Centre-based health system brought in $3.7 billion in total revenue last year, up 7% from 2023, according to an unaudited financial statement released Monday. Catholic Health’s earnings from patient services in hospitals and outpatient clinics increased year-over-year, but the health system still ended last year with a modest $3 million-loss as income from grants, value-based contracts and federal Covid-19 relief dollars declined, according to the report.
Other revenue – which includes government aid – was $165 million last year, down by nearly a quarter compared to 2023. Those earnings took a hit from a 36% reduction in federal Covid-19 aid, which totaled $54 million last year, according to the statement.
The decline in pandemic aid was expected, since relief funds stem from federal legislation passed in 2020 and the public health emergency is over. However, the dropoff in funding comes as the federal government mulls cuts to Medicaid and other government programs. The broad impacts of federal policy changes on hospitals are still largely unknown, but providers are bracing for changes to reimbursements at the state and federal level that could impact their businesses.
“Future changes in the Medicare and Medicaid programs and any reduction of funding could have an adverse impact on [Catholic Health],” the health system said in a statement.
A representative from Catholic Health did not reply to a request for comment by publication time.
Catholic Health’s rising expenses slightly outpaced revenue growth last year. The health system’s expenses rose by 9% year-over-year, reaching $3.7 billion by the end of 2024. The health system spent $1.9 billion on employee salaries and $420 million on benefits in 2024, up 9% and 10% from the previous year, respectively. Expenses for medical supplies including equipment and drugs also increased by approximately $100 million, reaching more than $1.2 billion.
Catholic Health has six hospitals, 11 ambulatory care facilities and a network of physician practices on Long Island.
