Partners HealthCare's Net Earnings Fall 24% in 1Q

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Boston-based health system Partners HealthCare posted a net gain of $128 million in the first quarter of fiscal year 2012, a 24 percent drop from $168 million posted in the same period last year, according to a health system news release.

Partners, which owns Massachusetts General Hospital and Brigham and Women's Hospital, attributed the decline to a drop in non-operating income, which included investment losses on interest rate swaps, according to the release.

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Income from operations in the first quarter of FY 2012, which ran from October to December, totaled $72 million for a 3.3 percent operating margin. In the same quarter of FY 2011, Partners recorded an operating income of $22 million. The difference was due to a one-time commitment of $40 million to reduce health premiums in the first quarter of FY 2011.

Partners' total operating revenue increased 9 percent to $2.2 billion, while net patient service revenue increased 10 percent to $1.7 billion. Inpatient activity increased 2.8 percent, while outpatient services remained steady.

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