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The Emergency Department at Yale New Haven Hospital photographed on December 9, 2021.

Yale New Haven Health President Chris O'Connor

NEW HAVEN — Yale New Haven Health expects a $200 million deficit this year, according to President Chris O’Connor.

For the first time in his memory, O’Connor said the health system presented a budget to the board of directors representing an operating deficit of $100 million.

“This is the first budget we presented to the board with an operating deficit,” he said. “There are tremendous headwinds, including labor and supply chain inflation, resulting in the budgeted deficit this year of $100 million.”

“We're going through our first underwater budget, the first budget that we're going to lose $100-plus million this year, in the pandemic environment,” he said.

But actual losses might be double that.

“Our current performance projects more toward a $200 million deficit,” O’Connor said.

Yale New Haven Health lost money in 2020, according to published financial reports, though the health system had expected to turn a profit that year.

“In 2020, we had budgeted an operating profit although with the onset of the pandemic, we actually incurred a 2.3 percent operating deficit,” O’Connor said.

The ongoing pandemic, he said, “clearly has put pressure on every hospital.”

“The reality is that we are all suffering from the environmental pressures of inflation, our staffing concerns,” O’Connor said. “So I think every hospital has added pressure.”

Yale New Haven Health is the state’s largest health system, with 28,589 employees and $8.4 billion in assets, according to its most recent financial report.

The health system recently announced its intention to buy three more hospitals from Prospect Medical Holdings.

In addition to Bridgeport Hospital, Greenwich Hospital, Lawrence + Memorial Hospital, Yale New Haven Hospital and Westerly Hospital, the acquisition would add Waterbury Hospital, Manchester Memorial Hospital and Rockville General Hospital.

O’Connor said that acquisition would add about a 4 percent market share to Yale New Haven Health’s holdings.

“I don't think it has a material impact on our market share overall,” he said.

Jordan Fenster is an award-winning reporter, podcaster and children's book author.  He serves as digital products editor at Hearst Connecticut Media and lives in Stamford with his dog, cat and three daughters.