North Shore-LIJ Health System ended last year with less demand for hospital care but more revenue, thanks to growth in outpatient visits and also premiums from its newly launched health plan.
The Great Neck, N.Y.-based health system saw fewer admissions to its hospitals last year as hospitalizations fall across the country. Still, North Shore-LIJ revenue increased 6.2% to $7.4 billion. The year included growth in its physician group's ranks and the opening of Manhattan's first freestanding emergency room last June.
Revenue from treating patients increased 4.5% to $6.9 billion from $6.6 billion in 2013.
The system also saw operating revenue gains as its health plan CareConnect added commercial insurance in January 2014 to the Medicaid managed-care plan it launched in November 2013. Premium revenue totaled $84.5 million last year, up from $1.3 million in 2013.
The health plan's medical-loss ratio, or the percentage of premiums it used to pay medical bills, was 94.3% last year, according to the National Association of Insurance Commissioners.
The health plan's operating margin was 1.2% last year, identical to 2013. The system ended the year with an operating gain of $87.5 million.
The system's net margin was 2.5% last year compared with 4% the prior year. The decline in net income to $190.8 million in 2014 from $284.9 million was attributable to the system's investment portfolio.
