Partners HealthCare rebounds in Q3, still faces financial pressure

Partners HealthCare reported operating income of $29.8 million in the third quarter of fiscal year 2015, which was a significant turnaround from the $34.5 million loss the Boston-based health system posted in the same period a year ago.

Partners reported operating revenue of $2.9 billion in the third quarter of FY 2015, up from $2.8 billion in the comparable period of 2014. That increase reflects continued growth in both provider and insurance activities, according to Partners.

The system's total operating expenses increased 4 percent to $2.9 billion in the third quarter of FY 2015 compared to the same period of last year. That increase was primarily attributable to higher wages and benefits, clinical supplies and medical insurance claims.

Partners reported an overall gain of $85 million in the third quarter of FY 2015, including nonoperating income of $55 million.

Although Partners rebounded financially in the third quarter, the system is still operating in a difficult environment. "Shifting payer mix from private and public payers, the rapidly rising cost of specialty pharmaceuticals and medical devices and rate increases from insurers that fail to keep pace with wage inflation are combining to create significant financial pressure," said Peter K. Markell, treasurer and CFO at Partners.

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