Two of the largest health care systems in southeast Wisconsin — Advocate Aurora Health and Froedtert Health — sustained losses this year that are leading executives to explore cutting some clinical services.

Health care systems’ financial challenges worsened this year as expenses for employee compensation far outstripped health system revenue, which increased only slightly. At the same time, health care systems saw the end of their two-year lifeline of federal government funds that provided relief from the negative impact of Covid-19 on health systems’ operating profits.

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