Catholic Health Initiatives (CHI) posted a substantial operating loss in 2016, the company’s latest annual report reveals.

The Englewood, Colorado-based not-for-profit health care system reported an operating loss of approximately $483.32 million for the year ended June 30, 2016. For comparison, CHI reported an operating income of about $23.86 million for the fiscal year ended June 30, 2015.

CHI dealt with mixed operating results during its 2016 fiscal year, including increases in same-store patient volumes that were offset by unfavorable shifts in service and payer mix across several of the regions in which the company operates. This ultimately led to reduced net patient services revenue yields, the annual report says.

“Lower patient volumes, higher labor costs, increased pharmacy prices and reduced reimbursement in Medicare and Medicaid all contributed to CHI’s financial performance in the 2016 fiscal year,” CHI elaborated in a written statement, according to Beckers Hospital Review.

Looking ahead, CHI plans to implement focused operational and clinical initiatives across the system as part of its ongoing comprehensive expense reduction strategy to address supply chain, overhead, labor, physician enterprise and additional cost management initiatives, the report says.

CHI, which currently operates in 17 states and serves more than 4 million people per year, has facilities that span the continuum of care. These include physician practices; acute care hospitals; assisted‐living and residential‐ living facilities; long‐term care facilities; home care; research and development; community‐based health services; medical and nursing education; reference laboratory services; virtual health services; managed care programs; and insurance products.

Read CHI’s annual report here.

Written by Mary Kate Nelson