Boston-based Partners HealthCare saw its revenue and operating income rise in the second quarter of fiscal year 2019, according to unaudited financial documents released May 3.
Partners' operating revenues totaled $3.4 billion in the second quarter of its fiscal year, which ended March 31. That's compared to the same period of 2018, when Partners reported operating revenues of $3.3 billion.
After factoring in a 2.1 percent increase in operating expenses, Partners ended the second quarter of fiscal 2019 with operating income of $131.2 million. That's up 89 percent from a year earlier, when the health system posted operating income of $69.5 million.
Partners reported a 3.9 percent operating margin for the second quarter of fiscal 2019, up from a 2.1 percent operating margin in the same period of the year prior.
The health system ended the second quarter of fiscal 2019 with net income of $622.8 million, which includes a nonoperating gain of $491.6 million. Partners reported net income of $157.9 million in the second quarter of fiscal 2018, including a nonoperating gain of $89 million.
New accounting rules affected Partners' nonoperating income in the second quarter of fiscal 2019. The new rules require all investments to be measured at market value. Under prior rules, a portion of the health system's investments were measured at cost, according to the financial documents.
Partners Treasurer and CFO Peter Markell said the health system is continuously improving its efforts to ensure less complex cases are treated in community settings to ensure Boston-based Massachusetts General Hospital and Brigham and Women's Hospital have the capacity to treat the sickest patients.
"Simply put, it is better for the patient, it is a more efficient way to deliver care, and it has helped strengthen our operating results these past few quarters," he said in the earnings release. "Additionally this quarter, favorable market conditions enabled us to recover the nonoperating losses we experienced during the first quarter."
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