Lahey Hospital and Medical Center in Burlington, Mass., the flagship hospital of Lahey Health, reported an operating loss in its most-recent quarter, as rising drug costs and an EHR transition took a toll on the hospital's finances, according to the Boston Business Journal.
In the first quarter of fiscal year 2016, which ended Dec. 31, Lahey Hospital posted an operating loss of $5.6 million. That's compared to a $3.7 million operating loss in the same period a year earlier.
Although the hospital saw operating revenue increase 4.3 percent in the first quarter of FY 2016, it also saw expenses rise.
Lahey reported operating expenses rose 5 percent year over year to $290 million in the first quarter of FY 2016. The increase was largely due to a $160 million Epic EHR implementation, according to the report.
Fueled by increasing pharmaceutical costs, the hospital also saw supply costs jump 14.8 percent year over year.
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