Partners posts $463M loss in Q1

Boston-based Partners HealthCare saw its operating income rise in the first quarter of fiscal year 2019 but ended the period with a net loss, according to financial documents released Feb. 1.

Partners' operating revenues remained nearly flat year over year. The system's 11 percent growth in provider revenue was offset by a decline in insurance revenue. Partners said the 66 percent year-over-year decrease in premium revenue was due to membership loss caused by restructuring the MassHealth program.

After factoring in a 0.9 percent decrease in operating expenses, Partners ended the first quarter of fiscal 2019 with operating income of $138.5 million. That's up 20.7 percent from a year earlier, when the health system posted operating income of $114.8 million.

Partners reported a 4.1 percent operating margin for the first quarter of fiscal 2019, up from a 3.4 percent operating margin in the same period of the year prior.

After factoring in a $601 million nonoperating loss, which included a $563.7 million loss on investments, Partners ended the first quarter of fiscal 2019 with a net loss of $462.8 million. Partners reported net income of $321.6 million in the first quarter of fiscal 2018.

New accounting rules affected Partners' nonoperating income in the first quarter of fiscal 2019. The new rules require all investments to be measured at market value. Under prior rules, a portion of the health system's investments were measured at cost, according to the financial documents.

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