PROVIDENCE – Care New England Health System closed out fiscal 2024 with $15.2 million in operating income, according to unaudited financial statements released Nov. 28.
This shows the health system is continuing an upward trajectory after posting a $13.4 million loss in fiscal 2023 and $58.6 million loss in 2022.
The health system also reported $9.9 million in operating income for the fourth quarter, which is up from $3.6 million reported in the same period last year.
Net income for the year was $65.9 million, up from last year’s $10.7 million. Operating revenue increased to $1.4 billion, up from last year’s $1.3 billion. Expenses also rose to $1.4 billion in 2024 over last year’s $1.3 billion.
Net patient service revenue rose to $1.2 billion in 2024, marking an 11.3% increase over last year’s $1.08 billion. Net assets released from restrictions rose to $27.9 million, a dramatic increase over last year’s $4.4 million.
Care New England’s spending on salaries and fringe benefits rose from $772.6 million in 2023 to $801.4 million in 2024. Licensure fees rose to $68.4 million in 2024, up from last year’s $40.6 million. Medical supplies and drug expenses rose from $141.2 million in 2023 to $161.1 million in 2024. Also, purchased services increased from $111.1 million in 2023 to $147.7 million in 2024.
Total assets for the year rose to $1.1 billion, up from last year’s $977.9 million. Boosting this was an increase in cash and cash equivalents, which rose from $41.2 million in 2023 to $89.9 million in 2024. Management said a drop in other receivables contributed to this rise. Other receivables decreased from $51.2 million in 2023 to $46.5 million, and the decline is mainly because of the timing of the receipts from the State’s Medicaid License Fee Program.
Net property, plant and equipment rose 23.5%, going from $201.8 million in 2023 to $249.1 million in 2024. Noncurrent assets limited to use rose to $469.1 million, up from last year’s $409.5 million. Accounts payable and accrued expenses increased by 38.6%, rising from $169.9 million in 2023 to $235.6 million in 2024. Current liabilities also rose from $241.5 million in 2023 to $315.8 million in 2024.
The health system’s days with cash on hand skyrocketed from 48.8 days in 2023 to 64 days in 2024.
Care New England’s management once again attributed the improved financial performance to different initiatives that began in 2023 and continued into 2024. These include reducing denials, prior authorizations and charge capture improvements, growth in clinical volumes both geographically and through more accessibility, improvements to the supply chain through a group purchasing agreement and less corporate overhead structure.
Growth patient volumes were also key in the health system’s improved performace, said Todd Conklin, chief financial officer for Care New England. Emergency department visits grew 7.9% during the year; surgical services also increased 5.5%; there was a 2.1% rise in discharges as well as a 2.3% in patient days. Conklin also said that fiscal 2024 was the second year in a row the health system reduced its overhead expenses.
“CNE continues to invest in people and infrastructure to meet the growing needs of the communities we serve,” Conklin said. “The challenges that health care systems face require constant improvement on our part to ensure we continue to serve our patients well.”
The health system is in the process of renovating its labor and delivery rooms through a project to build a new labor and delivery complex on its campus. The health system expects the complex to open in May 2025 and all of the $33 million needed for construction were raised through philanthropy. Care New England is also in the process of implementing the electronic health record system, Epic. The new system is meant to reduce operational costs, increase access to automation technologies and improve patient care. The health system expects to go-live with the new system Oct.1 2025.
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Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.
