Nuvance operating margin hits -4.9% ahead of Northwell merger

Danbury, Conn.-based Nuvance Health reported a $92.1 million operating loss (-4.7% margin) for the nine months ending June 30, a slight improvement on the $110.4 million loss (-6.1% margin) posted in the same period last year. 

Advertisement

Revenue for the nine-month period increased 8.3% year over year to $1.96 billion while expenses grew by 6.4% to $2.04 billion, according to financial documents published Aug. 20. 

Salaries increased 5.6% over the previous nine-month period to $897.9 million and benefits increased 13.6% to $214.5 million. Supply expenses increased 5.4% to $342.6 million.  

After accounting for nonoperating items, Nuvance reported a $46 million net loss for the nine months ending June 30, compared to a $65.5 million net loss for the same period last year. 

Nuvance plans to merge with New Hyde Park, N.Y.-based Northwell Health to form a 28-hospital system across New York and Connecticut. The Connecticut attorney general on Aug.. 26 reached an agreement with the health systems to secure  the continuation of labor and delivery services at Sharon Hospital, concluding an antitrust investigation into the proposed merger, 

The proposed transaction needs approval from Connecticut’s Office of Health Strategy through its certificate-of-need regulatory process. The health systems expect the deal to close by the end of this year.

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.