Boston-based Partners HealthCare saw its first-quarter operating income drop more than 60 percent year over year, according to recently released financial documents.
Partners ended the first quarter of fiscal 2020 with operating income of $45.5 million on $3.6 billion in revenue. Healthcare provider activity generated operating income of $55 million, while insurance activity generated an operating loss of $10 million. This compares to operating income of $114 million on $3.4 billion in revenue in the first quarter of fiscal year 2019.
Partners reported a 1.3 percent operating margin in the first quarter of this year, down from a 3.4 percent operating margin in the same quarter a year prior.
The system saw its expenses rise in the first quarter of 2020 to $3.4 billion. The expense growth was driven by employee compensation, supplies and depreciation.
Overall, the system saw its net income rise to $546 million in the first quarter of 2020, compared to a $462.8 million net loss in the same period a year prior.