PROVIDENCE – Care New England Health System reported an operating loss of $6.1 million in the second quarter of 2023 ending Mar. 31, continuing the upward trend started in the previous quarter.
The second quarter earning marks an improvement from last year, when the second quarter of fiscal 2022 saw a $14.2 million operating loss. Care New England also reported a net income of $5.34 million during the second quarter of 2023, thanks to net non-operating gain of $11.4 million.
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This brings Care New England’s loss from operations in the last six months to $19.9 million, $15.2 million favorable to last year’s $35.1 million loss in the same time frame.
CNE said its action plans are “solid and will continue to gain traction during FY 2023.”
“Management plans to continue to implement more initiatives targeting growth, access, cost savings, staffing to volume, and retention to stabilize and grow patient activity levels, as well as improve operating results,” said CNE in the report.
The system reported an operating revenue of $320 million during the quarter, that was however offset by $326 million in operating expenses. Net patient service revenue was $18.1 million higher this quarter than the second quarter of fiscal 2022. Some expenses were also higher compared to the same quarter last year: salaries increased by $5.4 million, while medical supplies and drugs were $3.9 million higher.
Shortfalls at Kent County Memorial Hospital, the Providence Center and the Kent County Visiting Nurse Association also continue to drive some of the system’s negative performance. In particular, the system said low medical and surgical volumes, inconsistent outpatient volumes and staffing shortages at Kent Hospital are still impacting the system’s performance.
Care New England wrote the system’s greatest financial challenge continues to be the lingering aftermath of the pandemic, that caused low patient volume and revenue, high labor expenses and high supply chain costs. But the group said it has developed additional action plans, which are expected to save $31.4 million in fiscal 2023.
In the last six months, CNE has received $535,846 in relief funds, including $259,095 in the second quarter.
Fiscal year 2023 was marked by a series of financial losses for the health system, including a $34.2 million operating loss compared to $16.1 million in net income a year earlier.
Claudia Chiappa is a PBN staff writer. You may contact her at Chiappa@PBN.com.
