CNE posts $3.8M profit for fiscal 2019

PROVIDENCE – Care New England Health System ended fiscal 2019 on a positive note, on Tuesday reporting a $3.8 million profit following significant losses the prior two fiscal years.

The nonprofit health system reported operating losses of $28.2 million in fiscal 2018 and $47.1 million in fiscal 2017.

Fourth-quarter results for 2019 include a $1.5 million profit, a steep drop from $11.5 million reported in the same quarter last year.

CNE’s obligated group, or all of its facilities and entities except the closed Memorial Hospital, reported operating income for the fiscal year, which ended Sept. 30, of $5 million, slightly less than the $5.3 million that the group generated in fiscal 2018.

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Excluding Memorial Hospital, which experienced enormous financial losses before its closure in 2018, CNE includes Butler, Kent and Women & Infants hospitals, Integra Community Care Network, Care New England Wellness Center, The Providence Center and VNA of Care New England, along with other smaller entities.

Year-end results included profits at Butler, $4.7 million; Kent, $6.8 million; Integra, $492,410; and the VNA of Care New England, $886,841.

“More aggressive turnaround plans are being implemented at Women & Infants Hospital and The Providence Center,” CNE said in a statement. Women & Infants reported a loss for the fiscal year of $4.3 million. The Providence Center’s fiscal 2019 loss was $2.8 million.

Dr. James E. Fanale, the system’s president and CEO, said the end-of-year results reflect growth and improvement.

“The year-end financial information reported today demonstrates Care New England’s continued commitment and focus on improving quality, service, access and financial performance,” Fanale said.

In August, CNE announced a purchase and sale agreement with Lockwood Development Partners of New York for half of the land on the Memorial campus, and all of the structures except for buildings that house ambulatory care clinics.

Preliminary plans call for the developer to turn the site into a wellness and residential facility for veterans, CNE said during the summer.

The health system, the state’s second largest, has navigated a turbulent year.

State officials were reviewing an application for its acquisition by Massachusetts-based Partners Healthcare in June when Gov. Gina M. Raimondo intervened, asking CNE, Lifespan Corp. and Brown University to reconsider forming an in-state unified health system.

The talks ended about six weeks later, when CNE withdrew, citing financial and organizational concerns.

Partners had withdrawn its merger application as well, when Raimondo paused the process, leaving CNE on its own.

Fanale has said the health system plans to chart a solo course for the moment, but has not ruled out the possibility of a future merger.

 

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