Providence, R.I.-based Care New England improved its operating performance by $44 million in the fiscal year ending Sept. 30, 2023, from $58 million in operating loss in fiscal 2022 to $14.1 million in fiscal 2023, according to its fourth-quarter investor report shared with Becker's.
"Care New England's fiscal year '23 was a very encouraging year," Todd Conklin, CFO of Care New England, told Becker's. "It was a financially successful year from an operating perspective as well as improving our balance sheet."
Operating revenue grew 5.6%, or $69.3 million, year over year to $1.29 billion in 2023. Its operating expenses also grew 1.9%, or $24.9 million, in that same time period.
"We have an approved budget for fiscal year '24 with a $12 million operating margin, so a positive operating margin and a quarter into it we are profitable and ahead of budget," Mr. Conklin said.
CNE also reported 50 days of actual cash on hand in 2023, 20 more than the 30-day requirement.
Mr. Conklin said the financial improvements CNE saw in 2023 were due to the implementation of growth initiatives designed to better service the community, including improvements to revenue cycle, operating expense management and supply chain.
Looking at 2024, CNE plans include reinvesting in programs to serve the community, including the continued construction on a 25-bed short-stay unit at the nonprofit health system's Providence-based Butler Hospital and an expansion project for the labor and delivery unit at its Providence-based Women and Infants Hospital.
"Our strategic capital projects are designed to meet the growing needs of the community," Mr. Conklin said.
Calling it a "relentless focus," Mr. Conklin said CNE's operational excellence is designed not only to control costs, but to implement the concept of expense flexibility.
"We are growing at the same time that we are pursuing gains and efficiency. Our corporate overhead expenses have been reduced in fiscal '23, and we continue to work on new ways to gain greater efficiency in our corporate overhead expenses," he said.
After CNE and Lifespan were forced to abandon merger plans in 2022 due to the Federal Trade Commission filing a suit to block their deal, Mr. Conklin said the health system currently has no active plans for any other mergers or acquisitions.
"We realize that in order for us to be a successful independent health system, strategic partnerships within our operation will always continue to be very important to us," Mr. Conklin said. "We always look to partnering with world class organizations where it makes sense, and we can create mutually beneficial winning situations for both parties."