When excluding costs related to closing Pawtucket, R.I.-based Memorial Hospital, Providence, R.I.-based Care New England ended the second quarter of fiscal year 2018 with a $4.4 million operating income — a $30.4 million improvement from the same period the year prior.
During the second quarter, all clinical services at Memorial Hospital were closed or transferred to other CNE hospitals. CNE officials believe financial improvements will continue as a result of the closure.
Including costs from Memorial Hospital, CNE posted a net operating loss of $7 million on revenue of $271.6 million in the second quarter of fiscal year 2018. Despite it being a loss, it is a large improvement from the same period in fiscal year 2017, where the system saw a net operating loss of $26 million on revenue of $274.8 million. CNE's Providence-based Butler Hospital, Providence-based Women & Infants Hospital and Warwick, R.I.-based Kent Hospital were all profitable for the second quarter.
"Today's reporting represents important and significant progress in CNE's efforts to dramatically improve its financial performance," said James Fanale, MD, president and CEO of CNE.
CNE reported $46.2 million in losses and expenses tied to Memorial in the first half of fiscal year 2018 ended March 31, due to restructuring costs, pension transfers and asset write-downs.
"While we continue to experience some significant loss associated with Memorial Hospital, we are experiencing tremendous results otherwise," Dr. Fanale said. He added that the system expects the losses from Memorial to dwindle throughout the remainder of the fiscal year and "we now can see to a point in the near future where those losses will end due to the closure."