Partners HealthCare posts operating income of $50.4M

Boston-based Partners HealthCare recorded operating income of $50.4 million in the third quarter of fiscal year 2017, compared to an operating loss of $33 million in the same period last year, according to unaudited financial documents.

Partners attributed the turnaround to greater provider-generated revenue through its acquisition of Dover, N.H.-based Wentworth-Douglass Health System, which was finalized Jan. 1, and its Neighborhood Health Plan operations. The health system reported revenues of $3.4 billion in the third quarter ended June 30, up from $3.2 billion in the same period in 2016.

At the same time, Partners saw operating expenses increase in the third quarter of 2017, reflecting its acquisition of Wentworth-Douglass and the system's voluntary retirement program extended at Boston-based Brigham and Women's Hospital. The health system recorded operating expenses of $3.4 billion in the third quarter of 2017, compared to $3.2 billion in the same period a year prior.

Peter Markell, CFO and treasurer at Partners, said the system is "incurring upfront costs in connection with Brigham Health's voluntary retirement opportunity, but expect this program to yield savings beginning in fiscal 2018." Partners anticipates the program will cost between $80 million and $90 million in total, Mr. Markell added.

After factoring in nonoperating gains, Partners achieved net income of $54.9 million in the third quarter of this year, compared to a net loss of $44.3 million in the same period a year prior.  

More articles on healthcare finance:
CMS cancels cardiac bundles, scales back CJR model: 8 things to know
Chinese billionaire again ups stake in CHS — this time for $71M
State-by-state breakdown of 80 rural hospital closures

© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months