Care New England's net loss nearly doubles in FY 2016

Care New England saw a slight increase in revenue in fiscal year 2016, but the Providence, R.I.-based system's expenses outpaced its revenue growth.

Care New England recorded revenues of $1.15 billion in the 12 months ended Sept. 30, up 1.5 percent from revenues of $1.12 billion in the year prior, according to recently released bondholder documents.

The financial boost was largely attributable to a 3.4 percent year-over-year increase in patient service revenue, which grew to $1.09 billion in FY 2016.

The system recorded expenses of $1.22 billion in FY 2016, up 7.3 percent from $1.14 billion in FY 2015. Care New England reported year-over-year increases in labor and supplies costs. The system also incurred $29.55 million in restructuring costs in FY 2016, up from $2.91 million the year prior. The restructuring expenses were all associated with retaining Huron Healthcare, a healthcare consulting firm, and severance costs.

Care New England ended FY 2016 with an operating loss of $68.28 million, compared to an operating loss of $1.79 million in FY 2015.

After factoring in nonoperating gains, Care New England recorded a net loss of $52.84 million in FY 2016, compared to a net loss of $27.84 million the year prior.

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