Care New England's $47.1M operating loss largely attributed to flailing Memorial Hospital

Providence, R.I.-based Care New England reported an operating loss of $47.1 million in the fiscal year that ended Sept. 30, with the most significant driver being Memorial Hospital in Pawtucket, R.I., CNE spokesperson Jim Beardsworth told Becker's via email.

CNE reported that Memorial Hospital, which is slated to close, lost $21.5 million in fiscal year 2017. The system said this emphasizes its "difficult but necessary" plans to close the facility. 

"In addition, CNE leadership has been working aggressively to implement stringent action plans focusing on growth initiatives, patient access and care retention efforts," Mr.  Beardsworth noted.

He said lower net patient revenues, lower inpatient volume — specifically, medical/surgical, obstetrics, deliveries and neonatal intensive care unit volume — and a changing payer mix also contributed to CNE's losses.

While the system lost $41.7 million in the most recent fiscal year, it noted it is seeing improvement, as CNE's loss in the first half of fiscal year 2017 was $39.9 million compared to a $7.2 million loss in the second half. Still, it acknowledged more work is necessary.

"With the continued focus and diligent adherence to our key plans and resolution of the Memorial Hospital closure, CNE is confident it will continue to build upon the progress displayed recently," Mr. Beardsworth said.

 

 

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