Boston-based Partners HealthCare saw its operating income rise in fiscal year 2018 despite a decline in revenues, according to financial documents released Dec. 7.
Partners saw operating revenues dip 0.5 percent year over year to $13.31 billion in fiscal year 2018, which ended Sept. 30. The health system’s significant growth in provider revenues was partially offset by a decline in insurance revenue. Partners said the decrease in insurance revenue was attributable to the transition of members from Medicaid managed care programs into the new MassHealth ACO program in March.
After accounting for a 2.4 percent decrease in expenses, Partners ended fiscal 2018 with operating income of $309.9 million. That’s up 489 percent from a year earlier, when the health system posted operating income of $52.57 million.
Partners reported a 2.3 percent operating margin for fiscal 2018, up from a 0.4 percent operating margin in the year prior.
“While a 2-3 percent 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,” said Peter K. Markell, treasurer and CFO of Partners.
After factoring in nonoperating income, Partners ended fiscal 2018 with net income of $826.6 million, up from $659.1 million in fiscal 2017.
Oakland, Calif.-based Kaiser Permanente reported higher revenues and operating income for its nonprofit hospital and health plan units in the first quarter of 2018, according to recently released financial documents.
Kaiser saw revenues increase to $20.3 billion in the first quarter of this year. That’s up about 12 percent from revenues of $18.1 billion in the same period of 2017.
The boost was attributable in part to the system’s health plan unit. Since Dec. 31, Kaiser has added approximately 472,000 health plan members. As of March 31, Kaiser had about 12.2 million members.
Kaiser reported operating income of $1.1 billion in the first quarter of this year, up from $1.04 billion in the same period of 2017.
After factoring in nonoperating income, which declined year over year, Kaiser ended the first quarter of 2018 with net income of $1.4 billion. That’s compared to the same period of 2017, when the organization reported net income of $1.6 billion.
Oakland, Calif.-based Kaiser Permanente saw revenue and operating income increase in 2016, according to recently released bondholder documents.
Kaiser said operating revenue for its nonprofit hospital and health plan unit climbed 6.4 percent year over year to $64.6 billion in 2016. After factoring in expenses, Kaiser ended 2016 with operating income of $1.9 billion, up from $1.8 billion in the year prior.
Kaiser reported a strong year in health plan membership growth. The system ended 2016 with 10.7 million members, an increase of 4.2 percent from the year prior. After completing its acquisition of Seattle-based health plan Group Health Cooperative Feb. 1, Kaiser’s health plan membership now tops 11 million.
In 2016, Kaiser’s capital spending increased to $2.8 billion, up slightly from $2.7 billion in 2015. The system opened a new technology campus in Atlanta and 12 new medical offices and two new dental offices last year.
Fueled by strong nonoperating income, Kaiser reported net income of $3.1 billion in 2016, up from $1.8 billion in 2015.