Partners HealthCare reported a large drop in its operating surplus in its fiscal second quarter, as both provider and insurance activity took income hits.
The 12-hospital, Boston-based system—whose flagship facilities include Massachusetts General Hospital and Brigham and Women's Hospital—reported a 4.5% decline in same-facility discharges and a 1.6% drop in outpatient activity. It also saw fewer observation and emergency department visits and performed fewer laboratory services and minor procedures.
In addition, the system faced $17 million in payments resulting from shortfalls in Massachusetts' Health Safety Net Trust Fund, which covers healthcare services for low-income patients.
The challenges represented a continuation of the difficult operating environment that has persisted since the beginning of its fiscal year. On the provider side, operating income declined to $13 million in the second quarter ended March 31, down from $33 million in the year-ago quarter.