Boston-based Partners HealthCare is one of the largest health systems in the country, and with $7.5 billion in assets, the health system relies heavily on the volatility of the stock market, according to a Boston Globe report.
Non-operating income — which includes investments, interest rate swaps and debt portfolios — is a major tenet of Partners' quarterly financial reports. According to the report, Partners' propensity to hedge on its debt and make large investments is the "tail that wags the dog."
"We know we're going to get these ups and downs," Partners CFO Peter Markell said in the report. "The main focus of everyone is the mission — patient care, research, teaching, and service to the community."
For example, for the last three months of 2008 — the peak of the financial crisis — Partners reported a non-operating loss of $244 million. In the second quarter of fiscal year 2012, Partners recorded a healthy profit of $132 million thanks to $127 million in non-operating income. Income from operations only totaled $5 million due to Partners' switch to a newer clinical and financial technology system, but investments salvaged the quarter.
Non-operating income — which includes investments, interest rate swaps and debt portfolios — is a major tenet of Partners' quarterly financial reports. According to the report, Partners' propensity to hedge on its debt and make large investments is the "tail that wags the dog."
"We know we're going to get these ups and downs," Partners CFO Peter Markell said in the report. "The main focus of everyone is the mission — patient care, research, teaching, and service to the community."
For example, for the last three months of 2008 — the peak of the financial crisis — Partners reported a non-operating loss of $244 million. In the second quarter of fiscal year 2012, Partners recorded a healthy profit of $132 million thanks to $127 million in non-operating income. Income from operations only totaled $5 million due to Partners' switch to a newer clinical and financial technology system, but investments salvaged the quarter.
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