Partners reports nearly six-fold jump in operating income
Skip to main content
Sister Publication Links
  • Modern Healthcare Metrics
MDHC_Logotype_white
Subscribe
  • Subscribe
  • Register
  • Login
  • News
    • This Week's News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • People
    • Regional News
    • Digital Edition
    • 668,000 will lose food stamp benefits under new work rules
      States focus on healthcare costs to address coverage problems
      Value-based pay still struggles to improve costs, quality
      Quorum Health considering buyout offer from KKR
    • Lacking specialist access drives health disparities
      Genetic Counseling
      Addressing barriers
 to expanding 
genetic counseling
      2,200 University of Chicago nurses ratify contract
      UPMC's operating income continues to spiral downward
    • Silver-loading, CSR elimination lowered premiums for some rural enrollees
      Centene to sell Illinois plan to CVS Health
      Blue Cross of Idaho unveils souped-up short-term health plans
      Health insurers' debt obligations have soared in the last decade
    • States focus on healthcare costs to address coverage problems
      Hospitals sue HHS over negotiated price disclosure rule
      Michigan governor: Legislature should help pause Medicaid work rules
      Dr. Stephen Hahn, FDA Commissioner
      Week Ahead: Committee likely to vote on nominee for FDA commissioner
    • Smallest hospitals saw biggest earnings gains last month
      Sutter Health postpones financial filing
      doctor helping patient stock image Sandoz
      Sponsored Content Provided By Sandoz
      As hospital executives look to reduce costs, biosimilars offer a compelling option
      Health systems issuing bonds at feverish pace
    • astronaut
      Astronauts developed bloodstream issues in space
      Sponsored Content Provided By ABM Healthcare
      Protecting and Maintaining Medical Devices
      human hand robotic hand stock image
      Sponsored Content Provided By Deloitte
      The Health System of the Future: How Digital Health Technology is Transforming Care
      EHR
      EHR vendors most in-use throughout Medicare incentive program
    • MRIs of dense breasts find more cancer but also false alarms
      Flu season takes off quickly in Deep South states
      Uber driver says South Carolina hospital dumped patient on him
      1 in 3 adults age 45 and older reported being lonely in a 2018 AARP survey
      Data Points: Loneliness and its impact on health
    • Mayo Clinic taps Dr. John Halamka to lead its Google partnership
      Jay Shannon out as CEO of Cook County Health
      Cleveland Clinic names Dr. James Merlino as chief clinical transformation officer
      Former Cone Health CEO Dennis Barry dies
    • Midwest
    • Northeast
    • South
    • West
  • Special Features
    • Best Practices
    • InDepth Special Reports
    • Innovations
    • Arkansas Children’s was a founding partner in Solutions for Patient Safety.
      Children's hospitals collaborate rather than compete on patient safety
      Peer recovery specialists at St. Barnabas Medical Center work with nurse Brenna Zarra.
      Peer recovery helping patients with addiction seek treatment
      UNC Health Care trains staff to treat dementia patients
      Doctor running
      Plain language alerts help Piedmont Healthcare patients, staff avoid confusion
    • Linda Kenney
      Patient advocate recalls two medical errors that nearly killed her
      Betsy Lehman
      Recent safety scandals suggest healthcare leaders haven't learned lessons
      Doctors and nurse with patient
      20 years after 'To Err is Human,' hospital care quality measures are still of little use
      Dr. Christine Cassel
      To err is human. That’s still true 20 years later, but some solutions to the problem aren’t helping
    • Advanced ICU Care
      Telemedicine helps rural hospitals meet intensivist shortage
      Randy Oostra, CEO of ProMedica
      HCR ManorCare deal laid foundation for ProMedica’s growth
      Paging Dr. Robot: Artificial intelligence moves into care
      A child being screened for vision problems using a smartphone.
      App screens kids for eye problems before they can talk
  • Transformation
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • ProMedica doubles down on social needs data analysis
      Amazon taps first pharmacy for Alexa Rx management
      Trump administration unveils new price transparency rules
      A child being screened for vision problems using a smartphone.
      App screens kids for eye problems before they can talk
    • Home health to pare down therapy services, up telehealth offerings
      Amazon launches medical transcription service
      Hospitals' uncompensated care continues to rise
      Supply chain tweaks could help average hospital hire up to 165 more nurses
    • Advanced ICU Care
      Telemedicine helps rural hospitals meet intensivist shortage
      Peer recovery specialists at St. Barnabas Medical Center work with nurse Brenna Zarra.
      Peer recovery helping patients with addiction seek treatment
      UNC Health Care trains staff to treat dementia patients
      UPS to kick off drone delivery service with hospital campuses
    • Value-based pay still struggles to improve costs, quality
      Hospitals sue HHS over negotiated price disclosure rule
      Bundled payments get a boost in two states with employee programs
      CMS wants primary-care docs to take on financial risk
  • Data/Lists
    • Rankings/Lists
    • Data Points
    • Modern Healthcare Metrics
  • Op-Ed
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
    • Randy Oostra, CEO of ProMedica
      HCR ManorCare deal laid foundation for ProMedica’s growth
      Steve Strongwater
      How Atrius Health stayed independent by not shying away from risk
      Why moving the VA to a new EHR was a pivotal decision
      Why AdventHealth's rebrand was more than a name change
    • Terry Shaw
      A diverse and inclusive culture should empower others
      Paving the path to diversity and inclusion
      The next step in healthcare evolution
      Breaking Bias: A road map to boost women and minorities into healthcare leadership
    • David Dill and Keith Myers
      Healthcare partnerships are a proven path to better care, healthier communities
      Health systems need to devote more resources to caring for the caregivers
      Chip Kahn and Alan Morgan
      Rural healthcare needs innovation, policy changes to survive
      Fawn Lopez and Bernard Tyson
      In remembrance and gratitude for a life well-lived
    • Hospital with money
      Letters: Let providers set their prices,
 and then publish them all
      Letters: Ambulatory surgery centers aren't getting a break on regulation
      Letters: Rising Medicaid spending isn't a windfall for providers
      Letters: The complexity of prior authorization runs deep
    • Sponsored Content Provided By Optum
      How blockchain could ease frustration with the payment process
      Sponsored Content Provided By Optum
      Three steps to better data-sharing for payer and provider CIOs
      Sponsored Content Provided By Optum
      Reduce total cost of care: 6 reasons why providers and payers should tackle the challenge together
      Sponsored Content Provided By Optum
      Why CIOs went from back-office operators to mission-critical innovators
  • Awards
    • Nominate
    • Award Programs
    • Previous Award Programs
    • Other Award Programs
    • Nominations Open - Top 25 Minority Leaders
      Nominations Open - Health Care Hall of Fame
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Top 25 Minority Leaders
    • Top 25 Women Leaders
    • Excellence in Nursing Awards
    • Design Awards
    • Top 25 COOs in Healthcare
    • 100 Top Hospitals
    • ACHE Awards
  • Events
    • Conferences
    • Galas
    • Webinars
    • Kronos webinar logo lockup
      Sponsored Content Provided By Kronos
      Webinar: The Future of Work in Healthcare
    • Leadership Symposium
    • Healthcare Transformation Summit
    • Critical Connections: Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Workplace of the Future Conference
    • Strategic Marketing Conference
    • Health Care Hall of Fame Gala
    • Top 25 Women Leaders Gala
    • Best Places to Work Awards Gala
    • Top 25 Minority Leaders Gala (2020)
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Providers
December 07, 2018 12:00 AM

Partners reports nearly six-fold jump in operating income

Tara Bannow
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Partners HealthCare grew its operating income just under six-fold during its fiscal 2018 compared with the prior year.

    The Boston-based not-for-profit health system drew nearly $310 million in operating income during its fiscal 2018, which ended Sept. 30, compared with $52.6 million in fiscal 2017. That works out to an operating margin of 2.3% in fiscal 2018 and 0.4% in fiscal 2017. Almost 90% of that came from providing healthcare services, and the remainder from its health plan, AllWays Health Partners.

    Partners drew $13.3 billion in total operating revenue in the fiscal year, down slightly from $13.4 billion in fiscal 2017. Partners' total operating expenses during the quarter were just under $13 billion, down from $13.3 billion in fiscal 2017.

    Despite a dip in non-operating gains, Partners also managed to grow its excess of revenue over expenses by 25% year-over-year to $826.6 million.

    "Our healthcare delivery system and our insurance plan exceeded performance expectations, putting us in a stronger position to serve the healthcare needs of our patients going forward," Peter Markell, Partners' chief financial officer, said in a statement. "While a 2-3% margin is slim compared to our peers across the nation, it enables us to reinvest in patient care and provide for the future capital needs of our hospitals and facilities."

    Through the system's Partners 2.0 initiative, it will work to improve the patient experience, empower researchers to discover new treatments and educate the next generation of providers, Markell said.

    Partners recorded a $1.4 billion shortfall in fiscal 2018 due to reimbursements from government programs like Medicare and Medicaid that didn't cover the cost of providing care to those patients. The health system said the shortfall was similar to that which it recorded in fiscal 2017.

    Of Partners' nearly $517 million fiscal 2018 non-operating gains, $157 million accounts for the impact of Mass Eye & Ear joining Partners on April 1. The rest reflects improved investment performance, philanthropic activity and an increase in the market value of interest rate swaps, the health system said. More than half of the health system's $606.5 million fiscal 2017 non-operating gain reflected the Wentworth-Douglass Health System joining Partners on Jan. 1, 2017.

    Inpatient discharges to Partners facilities grew 2.3% year-over-year to 169,000 in fiscal 2018. On a same-facility basis, discharges grew 0.8%. The health system recorded 8% year-over-year growth in ambulatory visits to 1.8 million in fiscal 2018. That metric declined by 0.5% when viewed on a same-store basis, however. Partners reported 5.3% growth in emergency department visits to about 426,000 during that time, or 0.4% growth in ED visits on a same-facility basis.

    Partners, which last month called off merger talks with Wellesley, Mass.-based Harvard Pilgrim, is about to get a big new competitor. Massachusetts' attorney general recently approved the creation of Beth Israel Lahey Health, which would be the state's second-largest health system by revenue behind Partners.

    Partners, whose hospitals include Brigham and Women's Hospital and Massachusetts General Hospital, is still awaiting regulatory approval to acquire Care New England Health System of Providence, R.I.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Sponsored Content
    Get Free Newsletters

    Sign up for free enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today

    The weekly magazine, websites, research and databases provide a powerful and all-encompassing industry presence. We help you make informed business decisions and lead your organizations to success.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS
    • Instagram

    Stay Connected

    Join the conversation with Modern Healthcare through our social media pages

    MDHC_Logotype_white
    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    Modern Healthcare
    Copyright © 1996-2019. Crain Communications, Inc. All Rights Reserved.
    • News
      • This Week's News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition
    • Special Features
      • Best Practices
      • InDepth Special Reports
      • Innovations
    • Transformation
      • Patients
      • Operations
      • Care Delivery
      • Payment
    • Data/Lists
      • Rankings/Lists
      • Data Points
      • Modern Healthcare Metrics
    • Op-Ed
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Awards
      • Nominate
      • Award Programs
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Top 25 Minority Leaders
        • Top 25 Women Leaders
      • Previous Award Programs
        • Excellence in Nursing Awards
        • Design Awards
        • Top 25 COOs in Healthcare
      • Other Award Programs
        • 100 Top Hospitals
        • ACHE Awards
    • Events
      • Conferences
        • Leadership Symposium
        • Healthcare Transformation Summit
        • Critical Connections: Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
        • Workplace of the Future Conference
        • Strategic Marketing Conference
      • Galas
        • Health Care Hall of Fame Gala
        • Top 25 Women Leaders Gala
        • Best Places to Work Awards Gala
        • Top 25 Minority Leaders Gala (2020)
      • Webinars
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing