Massachusetts’ largest health network, Partners Healthcare, lost $108 million on operations for the fiscal year ending Sept. 30, reversing a $106 million profit a year earlier.
The Boston Globe reported the turnaround can be almost entirely blamed on its Medicaid insurer, Neighborhood Health Plan, which Partners acquired in 2012. Membership has grown by 80 percent, but losses have piled up, including $104 million for 2015-16.
“At the end of the day, the biggest issue is the rate of payment we get from commercial payers, Medicare and Medicaid,” Partners CFO Peter Markell told the Globe. “Those payments are not keeping up with wage increases and pharmaceutical costs.”
When including investments in financial markets, Partners’ operating loss for the year increased to $249 million.
For more on what is put a strain on Partners’ finances—including a $1.2 billion electronic health record project and the threat of a nursing strike—click on the link below:
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.