How doe system a heathcare system post a net income while incurring an operating loss?

Answer 1

A healthcare system can post a net income while incurring an operating loss through non-operating revenues, such as investment income, donations, or grants. These additional sources of income can offset operating losses, allowing the organization to report a positive net income. Additionally, cost-cutting measures or financial management strategies may help improve overall financial performance despite negative operating results. Thus, the net income reflects total revenues minus total expenses, including both operating and non-operating activities.