Advocate to cut $200 million after alarming 1Q 2017
The largest health system in Illinois, Advocate Health Care, will make $200 million in cuts after revenue fell well short of what had been budgeted in the first quarter of 2017.
According to the Chicago Tribune, Advocate’s revenue did increase year-over-year, from $1.37 billion to $1.56 billion, but that figure was $70 million lower than what had been budgeted.
In a memo to employees, Advocate President and CEO Jim Skogsbergh said the system's "first quarter financial performance has brought into sharp focus what we know to be true … our existing cost structure is not sustainable."
Advocate did lose $15 million from its failed merger with NorthShore University Health System, but a spokesperson said the cuts are unrelated to those losses.
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.