Boston-based Partners HealthCare's operating income grew 62.7 percent to $74 million for the first quarter of its fiscal year 2015, reflecting growth in both provider and insurance activities.
The system posted a quarterly gain of $67 million from healthcare provider activity and a $7 million gain from its Neighborhood Health Plan, the system's insurance arm.
However, excluding the effect of a reserve Partners established in 2014, NHP would have generated a loss from operations of $20 million in the first quarter of fiscal 2015, which ended Dec. 31, 2014.
"NHP still faces a significant challenge with respect to receiving adequate rates from the state for the care of MassHealth members," said Peter K. Markell, treasurer and CFO of Partners. "We are cautiously optimistic that NHP can return to secure financial footing if the state develops rates using sound actuarial practices that incorporate actual patient experience and the true impact of the Affordable Care Act."
The system's total operating revenue increased to $2.8 billion in the first quarter of fiscal 2015, up 8 percent from the same period of the previous year.
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