Main Line Health finances were hit with a $125 million operating loss for the year ending June 30, highlighting some of the problems right now in the healthcare field.

The nonprofit health system blamed low reimbursements from Medicare and private insurance payments that haven’t kept pace with inflation, writes Harold Brubaker for The Philadelphia Inquirer.

Main Line Health also lost $23 million in federal COVID-19 aid this year.

“Last year, Medicare and Medicaid patients comprised 65 percent of our cases. Yet the reimbursement rates from these government payers remain well below the cost of care,” Main Line CEO Jack Lynch said in a statement.

Main Line Health owns four acute hospitals in Philadelpha’s western suburbs, including Riddle Hospital in Media.

The healthcare group is seeing surging costs in drugs, supplies, and labor, yet commercial payers have not allowed for inflationary pressures, Lynch said.

“There do not appear to be any immediate changes on the way that would address this reimbursement problem,” Lynch said.

Main Line Health’s financial reserves prior to the pandemic could cover 317 days of expenses even with no further revenue collected.

That figure is now down to 229 days.

Find out more about the circumstances surrounding Main Line Health finances and operating losses in The Philadelphia Inquirer.