Care New England's financial turnaround continues after calling off merger

Providence, R.I.-based Care New England Health System ended the third quarter of fiscal year 2019 with higher revenue and operating income than in the same period a year earlier, according to unaudited financial documents.

The health system posted revenue of $290.6 million in the third quarter of fiscal 2019, up from $278.8 million in the same quarter of the year prior. After factoring in expenses, the health system ended the third quarter of fiscal 2019 with operating income of $7.4 million, up from $800,000 a year earlier.

Management said the health system's year-over-year financial improvement is attributable to several factors.

"The successful implementation of growth initiatives and cost management has been very effective," the health system said in its financial documents. "Action plan tracking, daily productivity monitoring, and revenue cycle improvements are making an impact on performance."

Care New England released its financial results for the third quarter a few weeks after its board voted to withdraw from merger talks with Lifespan and Brown University, both in Providence. Merger discussions began after Boston-based Partners HealthCare withdrew its application to acquire Care New England.

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