Providence, R.I.-based Care New England recorded a $4.6 million gain from operations in the third quarter of fiscal year 2018 after excluding costs related to closing Pawtucket, R.I.-based Memorial Hospital.
This is up from the $6.5 million operating loss the system recorded in the same period a year prior. Care New England's net income improved $46.8 million in the first nine months of this year to $0.4 million, when excluding Memorial Hospital costs. The year before, the three-hospital nonprofit system recorded a $46.4 million net loss in the nine-month period.
"The successful implementation of growth initiatives and cost management has been very effective," the system said in its most recent financial filing. "Action plan tracking, daily productivity monitoring, and revenue cycle improvements are making an impact on performance."
During the second quarter of 2018, all clinical services at Memorial Hospital were closed or transferred to other Care New England hospitals. Care New England officials believe financial improvements will continue as a result of the closure.
However, when including costs from Memorial Hospital, Care New England recorded operating income of $0.8 million on revenue of $828.5 million. In addition, the system ended the first nine months of 2018 with a $39.9 million operating loss, which includes a $49.9 million operating loss at Memorial Hospital.
Care New England is also seeking a merger with Boston-based Partners HealthCare. The systems asked Rhode Island health officials Aug. 8 to expedite their review of the systems' proposed merger, citing Care New England's ongoing fiscal issues.
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