PROVIDENCE – Care New England Health System reported a $13.2 million loss in the fiscal year ended Sept. 30, the company reported on Thursday. The state’s second-largest health system reported an $8.2 million profit one year prior.
The financial news amid the pandemic was better for Lifespan Corp. and its affiliates. Rhode Island’s largest health care system, on Nov. 30 said it ended the fiscal year with a $21.3 million profit, compared with a $34.9 million loss one year prior.
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CNE revenue for the fiscal year totaled $150.9 million, a decline from $152.3 million one year prior. The company said that it had received $62.4 million in state and federal stimulus grants fiscal year to date.
The health system also said that it had implemented staff reductions, furloughs and a voluntary retirement plan in departments where volume is down and staffing is not currently needed. It also implemented temporary compensation adjustments to CNE’s management ream, employed physicians and other providers.
CNE says it is actively working with vendors and landlords to negotiate discounts and deferred payments.
Lifespan:
Lifespan revenue totaled $2.5 billion, an increase from $2.4 billion one year prior. Net patient service revenue declined 2.2% year over year.
To offset the impacts of the COVID-19 pandemic, Lifespan said it received $169.9 million from the Centers for Medicare & Medicaid Services under the expanded Accelerated/Advance Payment Program for Medicare providers. The funds received under the program represent a noninterest-bearing loan that Lifespan’s participating providers must repay.
It also received $165.2 million from the Coronavirus Aid, Relief, and Economic Security Act in the form of grants released by the U.S. Department of Health and Human Services, and $24.7 million from the Rhode Island Hospital Assistance Partnership Program in the form of grants released by the R.I. Department of Administration.
The health system logged $6 million in restructuring costs for the year related to the voluntary early retirement offer that was accepted by 161 full-time-equivalent workers, with the cost recorded in March.
In regards to the letter of intent to merge Lifespan and Care New England filed on Sept. 8, Lifespan noted that the due diligence review process is currently underway. Approval will be sought from the state attorney general’s office and the R.I. Department of Health.
Lifespan also said that an agreement has not yet been reached with Coastal Medical, with which it signed a nonbinding letter of intent to pursue an affiliation on Feb. 26.
