Montefiore Medical Center rode investment income and a $4.6 million gain from a debt refinancing to post an operating gain of $7.9 million for the nine months ended Sept. 30, according to unaudited financial statements.
Without the refinancing boost and investment income of $8.5 million, Montefiore would have been in the red. In the nine months, it posted a loss of $5.2 million excluding those gains on total revenue of $2.92 billion.
The New York City-based medical center, a part of Montefiore Health System, had budgeted for a $33 million operating gain through the nine months. But it has been hit by changes in the risk-adjustment formula in the Medicare Pioneer accountable care organization program and unexpected costs associated with an Epic electronic health record and billing system rollout, the company said in a statement.
"Like many health care systems in the region, Montefiore is facing a significant rise in the cost of supplies, equipment and pharmaceuticals. These rising costs are not offset: Medicare and Medicaid reimbursement rates have remained virtually stagnant,” the company remarked.
By contrast, Montefiore's operations, excluding special items, showed a gain of $5.6 million in the first nine months of 2016 on revenue of $2.74 billion.
Admissions were 67,291 compared with 65,271 in the year-earlier period.
Outpatient visits across the system jumped to 255,297 from 191,113 for the same period a year ago.
Montefiore remarked that patient revenue was up about 50% at its Hutchinson campus, a giant ambulatory site that Montefiore calls a hospital without beds. The Montefiore Medical Group also saw an 11% increase in primary care visits over the nine months.