Worcester, Mass.-based UMass Memorial Health Care posted a $197.5 million operating gain in fiscal year 2019, entirely attributed to the sale of its stake in a specialty pharmacy business, according to the Boston Business Journal.
Without the sale of the specialty pharmacy business, Shields Health Solutions, the health system would have reported a $10.1 million operating loss in fiscal year 2019. This compares to a $28.4 million operating loss in fiscal year 2018.
UMass Memorial reported $2.6 billion in revenue in the 12 months ended Sept. 30, which compares to $2.5 billion in revenue reported the year prior.
The pharmacy unit was sold for $263 million in late August, according to the Worcester Business Journal.
Eric Dickson, MD, president and CEO of UMass Memorial told the Business Journal the asset was sold out of necessity.
"We sold an asset that in many ways we didn't want to sell, because it was turning a dividend every year, but we had to do it to get facility and equipment upgrades our patients and providers deserve," Dr. Dickson said.
More articles on healthcare finance:
How 2 former debt collectors helped erase $1B in medical bills
10 states with the most for-profit hospitals
North Carolina hospital misses payroll