Marshfield (Wis.) Clinic Health System reported an operating loss in the first quarter of fiscal year 2018, primarily driven by lower reimbursement and higher use of its Security Health Plan.
The health system generated an operating loss of $17 million in the three months ended Dec. 31, 2017, according to recent financial filings. Marshfield Clinic attributed the decline largely to a $9.3 million decrease in reimbursement to its own Security Health Plan. The plan saw lower reimbursement due to suspension of the ACA's cost-sharing reductions and transitional reinsurance programs.
President Donald Trump's administration ended the cost-sharing reduction payments in early October 2017. The CSRs helped offset the cost of providing health insurance to low-income Americans purchasing plans on the ACA exchanges.
Marshfield Clinic saw revenue increase 8.4 percent to $576.8 million in the first quarter of 2018 compared to the same period a year prior. The growth was fueled by its acquisition of Marshfield (Wis) Medical Center in July 2017. As revenue increased, first quarter expenses for the health system also grew to $593.8 million, up 12.3 percent compared to the same quarter of fiscal year 2017. The same acquisition and increased labor costs contributed to the incline.
After factoring in nonoperating gains, Marshfield Clinic ended the first quarter of 2018 with a net loss of $7.8 million, compared to net income of $1.3 million in the same period a year prior.
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