Harvard Pilgrim HealthCare, a not-for-profit health plan in New England, reported a decrease in its operating surplus for 2013.
Revenue from premium income (PDF) declined 1% to $2.6 billion, the Wellesley, Mass.-based payer reported. Net income declined to $19.8 million, or 11.8% below the $22.5 million the previous year.
Health plan membership grew about 3% year over year to more than 1.2 million.
Harvard Pilgrim was not available for comment on its results. But in a news release, Charley Goheen, chief financial officer, said the financials reflect investments into its information technology capabilities as well as strategic initiatives.
The health plan, for instance, formed a care-coordination program called ElevateHealth in partnership with Dartmouth-Hitchcock and Elliot Health System, which is designed to lower costs while improving quality.
It also received a $9 million grant from the Patient-Centered Outcomes Research Institute to head up a consortium that is compiling national data to determine the comparative effectiveness of different treatments.
In addition, Harvard Pilgrim re-entered the Medicare Advantage market in 2013 and plans to expand into Connecticut.
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