Lahey Health's flagship hospital takes financial hit from Epic transition

Lahey Hospital and Medical Center in Burlington, Mass., the flagship hospital of Lahey Health, reported an operating loss in its most-recent quarter, as rising drug costs and an EHR transition took a toll on the hospital's finances, according to the Boston Business Journal.

In the first quarter of fiscal year 2016, which ended Dec. 31, Lahey Hospital posted an operating loss of $5.6 million. That's compared to a $3.7 million operating loss in the same period a year earlier.

Although the hospital saw operating revenue increase 4.3 percent in the first quarter of FY 2016, it also saw expenses rise.

Lahey reported operating expenses rose 5 percent year over year to $290 million in the first quarter of FY 2016. The increase was largely due to a $160 million Epic EHR implementation, according to the report.

Fueled by increasing pharmaceutical costs, the hospital also saw supply costs jump 14.8 percent year over year.

More articles on healthcare finance:

How CHS, Tenet, UHS, LifePoint and HCA fared in Q4
3 ways hospitals can increase profitability in 2016
Mayo operating income dips 36.9% as expenses rise

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months