CNE Health System posts $4.5M operating loss in Q1

PROVIDENCE – Care New England Health System reported an operating loss of $4.5 million in the first quarter of 2020 ended Dec. 31, the company announced on Friday.

The system recorded a $700,000 operating profit in the first quarter of fiscal 2019.

The health organization’s obligated group, which excludes the now-closed Memorial Hospital, logged a $3.7 million loss for the quarter. The obligated group logged a $1.6 million operating profit one year prior.

Total CNE revenue for the year was $281.2 million, a 0.8% decline year over year.

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CNE attributed its weak quarter to below-anticipated hospital volume, with the exception of traffic at Butler Hospital, and underwriting losses to indemnity programs.

Women & Infants Hospital accounted for $2.5 million in losses, while Kent Hospital accounted for $1.8 million in losses in the fiscal first quarter. Butler had an income of $1.3 million in the quarter.

“We know we have work to do,” said Dr. James E. Fanale, president and CEO of CNE. “We are diligently working with leadership across the system on various process and operations improvement initiatives, implementing action plans, and targeting areas for growth opportunities to help build a healthy financial future. Additionally, we are working hard to provide better, timely access to our programs and services.”

Net patient-service revenue declined $6.5 million year over year to $244.5 million. Research revenue in the quarter was $11.1 million, compared with $8.7 million one year prior.

Operating expenses were $285.8 million in the quarter, including $134.8 million of wages and salaries.

Including nonoperating activity, CNE ended the quarter with a $5.5 million excess of revenue over expenses, primarily due to investment gains.

Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.

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