Home Butler Hospital CNE reports $566K operating gain in Q1

CNE reports $566K operating gain in Q1

By

Katie Castellani

-

03/01/2024

Kent-hospital — CARE NEW ENGLAND HEALTH SYSTEM is starting its fiscal year on a high note reporting an operating gain of $566,000 through the first quarter of 2024 ending Dec. 30, 2023, according to unaudited financial statements released Feb. 14../ / COURTESY KENT COUNTY MEMORIAL HOSPITAL

PROVIDENCE – Care New England Health System is starting its fiscal year on a high note reporting an operating gain of $566,145 through the first quarter of 2024 ending Dec. 31, 2023, according to unaudited financial statements released Feb. 14. The first quarter earnings show an improvement over the same period last year when the

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PROVIDENCE – Care New England Health System is starting its fiscal year on a high note reporting an operating gain of $566,145 through the first quarter of 2024 ending Dec. 31, 2023, according to unaudited financial statements released Feb. 14. The first quarter earnings show an improvement over the same period last year when the health system reported a $13.7 million operating loss. This also shows the health system is continuing its upward trajectory from the end of 2023 when Care New England’s operating loss narrowed to $14.2 million from a $58.6 million loss in 2022. Care New England’s net income for the quarter also marked a dramatic improvement rising to $24.8 million from $1.3 million last year. The state’s second largest health system's total operating revenues also rose to $343.5 million for the period, which is around $35 million higher than last year's $308 million. Net patient service revenue jumped by $35.8 million, going from $259.1 million in the first quarter 2023 to $294.9 million in the most recent period. Care New England's relief funding also increased to $576,371 for the period, up from $276,752 the previous year. Since the onset of COVID-19 pandemic Care New England has received financial relief from the federal government through the Coronavirus Aid, Relief, and Economic Security act to help lessen the effects of rising costs and reduced revenue. For the first quarter 2024 Care New England said it has not received any additional relief from the CARES act nor does it have any more obligations related to repayments or minimum contributions. But while the overall margin improved, Care New England’s total expenses rose from $321.7 million compared to $342.9 million in the first quarter 2024. Adding to Care New England's expenses were licensure fees which were around 68% higher this quarter compared to last year, going from $10.1 million to $17.1 million. Purchased services also increased from $27 million last year to $34.4 million and the health system's spending on fringe benefits rose from $38.1 million to $40.3 million in the most recent quarter. Also, Care New England’s cash and cash equivalents and short-term investments fell from $64.9 million the previous year to $43.9 in the first quarter 2024. CNE’s assets were around $1.02 billion for the quarter, a $62.1 million increase from last year's $939.4 million. Contributing to this was the health system's receivables rising $35.2 million from $44.1 million last year to $79.3 in the most recent period. The health system attributed this rise in receivables to an increase in the State of Rhode Island Medicaid License Fee Program which provides receipts and disbursements. CNE says it will benefit by an incremental $14 million as a result of the program during 2024 with receipts from the program expected to be received during the second quarter. Overall, the health system credited its performance for the quarter to management’s growth and costs efforts, which include implementing action plans, monitoring labor and productivity and improvements to the revenue cycle. Care New England says it has implemented more than 70 action plans for 2023, with many carrying over into 2024. Some of these plans include growing surgical services programs, expanding access and its geography of clinical service, improving length of stay as well as supply chain savings. So far the plans have stayed ahead of forecast and the health system is confident they will remain strong throughout 2024. “Management believes the action plans are solid and will continue to gain traction during FY2024,” the health system said in its financial report. A spokesperson for Care New England could not be immediately reached for comment on the financial report. Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.