Bronx, N.Y.-based Montefiore Health System experienced some financial setbacks in 2019, which it attributed to participation in some value-based contracts and underpayments from government-run insurance programs.
The health system recorded operating revenue of $6.24 billion in 2019, up from $5.91 billion in 2018, according to recently released financial documents. But the health system also saw expenses rise year over year to $6.34 billion. It reported $5.93 billion in operating expenses in 2018.
After factoring in nonoperating gains and the revenue it generated from a vital access provider program, the health system ended the year with a net income of $8.67 million, down from the $53.48 million reported in 2018.
The health system reported an operating margin of 0.14 percent in fiscal year 2019, down from 0.89 percent in 2018.
"We experienced serious financial setbacks resulting from participation in some value-based contracts that did not account for the complexity of our patients. Since then, we made the difficult, but financially responsible decision to exit these contracts," Montefiore stated in a news release.
Montefiore also said its bottom line continues to be burdened by underpayments for Medicare and Medicaid, because 85 percent of its patient population is covered by one or both of the government-run insurance programs.