PROVIDENCE – Care New England Health System finished fiscal year 2025 with a $10.8 million operating loss according to unaudited financial statements released Nov. 25.
The was a downturn from the $15.2 million operating gain the state's second largest health system reported a year prior.
For the fourth quarter which ended Sept. 30, Care New England reported an $11 million operating loss compared to a $9.9 million operating gain a year ago. This is was also the health system's second consecutive quarter with a negative operating income after eight positive income quarters in a row. In the third quarter of fiscal 2025, Care New England reported a $4.4 million loss.
Prior to that downturn, Care New England reported a $1.2 million operating gain in the second quarter of the year.
Care New England attributed the loss to "greater than budgeted temporary staffing expenses incurred at Butler Hospital as a result of unsuccessful contract negotiations with Butler Hospital’s labor union that resulted in a labor strike that began in May 2025."
The SEIU 1199 New England union represents 2,646 Care New England employees across facilities, according to the financial report, including 674 of whom work at Butler. The union, which had expressed concerns around wages and safety, ended its strike in August after reaching a new contract with the health system.
The union criticized this characterization of the strike on Tuesday, with SEIU 1199NE Executive Vice President Jesse Martin stating that the health system's "strategic long-term business decision to prolong this strike" drove any related losses.
“Care New England has chosen to blame its financial losses on the very caregivers who were calling for nothing more than fair wages, safe staffing, and the protection of their retirement benefits," Martin said.
"Instead of wasting millions of dollars on out-of-state replacement workers, anti-union law firms and public-relations consultants, Care New England could have listened to its frontline staff and avoided the longest hospital strike in state history," he continued.
For fiscal 2025, Care New England reported its net patient service revenue as $75.2 million, a 6.3% increase over last year. Other revenue was 11.6% higher year-over-year, at $28.3 million.
Meanwhile, operating expenses for the year finished at $130 million, according to the report, with $107.8 million attributed to salary and benefit expenses "related to temporary staffing as a result of unsuccessful contract negotiations."
The health system reported a $1.28 billion net patient revenue service for fiscal 2025, compared to $1.2 billion in 2024, with other revenue accounting for $2.72 million in 2025 and $2.44 million in the year prior.
Salary and benefit expenses rose to $9.1 million in fiscal 2025 compared to $8.01 million in fiscal 2024, while supplies and other expenses rose to $4.84 million from $4.5 million year over year.
The health system also reports total net assets of $359.2 million, representing an increase of $15.8 million year-over year.
As of Sept. 30, Care New England has a total outstanding indebtedness of $1.35 million, representing a $7.9 million year-over-year decrease.
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
