Skip to main content
Subscribe
  • Login
  • My Account
  • Logout
  • Register For Free
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Blogs
    • AI
    • Deals
    • Layoff Tracker
    • HLTH 2024
    • Sponsored Content: Vital Signs Blog
  • Opinion
    • Letters
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • 40 Under 40
    • Best Places to Work in Healthcare
    • Healthcare Marketing Impact Awards
    • Innovators Awards
    • Diversity Leaders
    • Leading Women
    • Best in Business Awards
    • The 2030 Playbook Conference
    • Innovations in Patient Experience
    • Leading Women Conference & Awards Luncheon
    • Leadership Summit
    • Workforce Summit
    • Best Places to Work Awards Gala
    • Diversity Leaders Gala
    • - Looking Ahead to 2025
    • - Financial Growth
    • - Hospital of the Future
    • - Value Based Care
    • - Looking Ahead to 2026
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Sponsored Video Series - One on One
    • Sponsored Video Series - Checking In with Dan Peres
  • Data & Insights
    • Data & Insights Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Skilled Nursing Facilities
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
    • Sponsored Content
MENU
Breadcrumb
  1. Home
  2. Providers
May 29, 2020 02:46 PM

Northwell reports steep operating decline in first quarter

Tara Bannow
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Modern Healthcare Illustration / Getty Images

    Not-for-profit Northwell Health in New York is the latest major health system to report a significant operating decline in the first quarter of 2020 from the COVID-19 pandemic.

    New Hyde Park, N.Y.-based Northwell weathered a $141 million operating loss in the quarter that ended March 31, a 4.6% loss margin, compared with a $20 million operating loss in the prior-year period, a 0.7% loss margin.

    That's partly because Northwell discontinued all non-emergent and elective procedures March 16, earlier than some other parts of the country. New York City has been a COVID-19 epicenter in the U.S., having reported nearly 200,000 cases and about 16,700 confirmed deaths as of Friday afternoon, according to the health department.

    Northwell's CEO, Michael Dowling, said in late March the number of COVID-19 patients health system was treating had increased more than tenfold, from 90 to more than 1,250 across the system's 19 metro area hospitals.

    But as has been the case nationwide, the real damage hit in April. Northwell estimates its operating results took a $330 million hit in the month of April alone. That was partly mitigated by $1 billion in grants from the Coronavirus Aid, Relief and Economic Security Act and the reopening of certain services. The CARES Act funding is not included in the first quarter results.

    Northwell said it expects the negative financial impact to extend beyond April, but the amount will depend on how long the pandemic lasts, the pace of reopening, the amount of federal relief received and the impact of a potential COVID-19 resurgence.

    New York state allowed the resumption of some elective procedures in late May in Nassau, Suffolk and Westchester counties, but such procedures were still not allowed in New York City as of May 29, the health system said.

    Even though revenue ticked up 4.4% to almost $3.1 billion in the quarter, the increase wasn't enough to offset that of expenses, which jumped 8.5% in the quarter to $3.2 billion. Northwell said responding to COVID-19 required spending more on labor and supplies.

    A steep drop in investment value bumped Northwell's deficiency of revenue over expenses to almost $710 million, a massive compared with an excess of revenue over expenses of $201 million in the prior-year period.

    Northwell wrote in a report accompanying its financial statement that it began preparing for the onset of COVID-19 in early February. The health system said it was among the first private clinical laboratories approved by the state and federal governments to conduct COVID-19 diagnostic testing. Northwell said it ran mobile test sites and temporary hospital facilities built by the U.S. Army Corps of Engineers at the Javits Center in Manhattan and elsewhere, and is conducting at least six clinical trials for COVID-19 treatments.

    "Northwell's team members have put forth a dedicated effort to help its communities, patients and family members battle through the devastating effects of this pandemic," the health system said. "No other health system in NYS has treated as many COVID-19 patients as Northwell and Northwell was among the health systems that treated the most COVID-19 patients in the US."

    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
    mh-20250513-Yellowstone-rural
    How 24 rural hospitals look to improve value-based care
    mh-20250509-dementia
    Federal dementia pilot has rocky rollout for some providers
    Most Popular
    1
    UnitedHealth Group to cut Medicare drug plan commissions
    2
    PBM limits could finally pass, if Congress moves its tax-cut bill
    3
    ACOs call on Oz to fix Shared Savings Program benchmarking issue
    4
    Where top executive search firms are seeing changes in demand
    5
    Investors welcome a maturing digital health market
    Sponsored Content
    Modern Healthcare A.M. Newsletter: Sign up to receive a comprehensive weekday morning newsletter designed for busy healthcare executives who need the latest and most important healthcare news and analysis.
    Get Newsletters

    Sign up for 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
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

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

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Help Center
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2025. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HLTH 2024
      • Sponsored Content: Vital Signs Blog
    • Opinion
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • 40 Under 40
        • Best Places to Work in Healthcare
        • Healthcare Marketing Impact Awards
        • Innovators Awards
        • Diversity Leaders
        • Leading Women
        • Best in Business Awards
      • Conferences
        • The 2030 Playbook Conference
        • Innovations in Patient Experience
        • Leading Women Conference & Awards Luncheon
        • Leadership Summit
        • Workforce Summit
      • Galas
        • Best Places to Work Awards Gala
        • Diversity Leaders Gala
      • Virtual Briefings
        • - Looking Ahead to 2025
        • - Financial Growth
        • - Hospital of the Future
        • - Value Based Care
        • - Looking Ahead to 2026
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Skilled Nursing Facilities
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing
      • Sponsored Content