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.
More articles on healthcare finance:
Tennessee hospital receives court oversight amid financial troubles
Carilion Clinic CFO Don Halliwill’s advice to other finance execs: ‘Hire people who are smarter and more talented than you’
Top 5 healthcare finance stories in January
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.