Partners HealthCare turns around worst financial loss to a profit in FY 2017

Boston-based Partners HealthCare reversed the worst financial loss in its history to post a profit in fiscal year 2017, according to the Boston Globe.

In the latest fiscal year that ended Sept. 30, Partners saw its revenue climb 7 percent to $13.4 billion and reported a gain of $53 million from operations. Including investments, Partners reported a net gain of $659 million. This compares to a $108 million operating loss on $12.5 billion of revenue in fiscal year 2016, which Partner's attributed to problems with its insurance business, Neighborhood Health Plan.

"We feel things are in better shape," Peter Markell, CFO at Partners told the Boston Globe. "We think we're in a decent position."

A turnaround for Partners' insurance arm was a main driver for profit this year. According to the Boston Business Journal, Neighborhood Health Plan reported an operating gain of $46 million in fiscal year 2017, in comparison to an operating loss of $104 million in fiscal year 2016.

Mr. Markell attributed the growth to an expansion of the plan's commercial side paired with not accepting new Medicaid members, who are often more expensive in the first year.   

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