Care New England Health System reported a $47-million operating loss for the fiscal year, nearly half attributed to Memorial Hospital.
Rhode Island’s second-largest hospital system — which is in the process of trying to close the community hospital in Pawtucket — reported Memorial lost nearly $21.5 million in the fiscal year that ended Sept. 30.
The nonprofit health system has been trying to stem across-the-board losses at its hospitals through system-wide layoffs – it reported $13.5 million in fiscal 2017 primarily on severance costs and fees to consultants guiding the cost-cutting efforts, according to public filings.
But the savings have been off-set by persistent low patient volumes, particularly in surgeries and obstetrics, and lower reimbursements due to a shift toward Medicaid, the government insurance program for low-income people.
Care New England reported it has 44 days of cash-on-hand – or money left after it has paid all its debts. That’s up from 40.3 days as of June 30. The minimum cash-on-hand required overall is 30 days.
“(Care New England) has been working aggressively to implement stringent action plans focusing on growth initiatives, patient access and care retention efforts,” Jim Beardsworth, a company spokesman, said in a statement. “It is clear by today’s filing that significant progress is being made but much more work remains.”
Care New England’s $7.2 million loss during the second half of the fiscal year, “represents a significant financial improvement,” Beardsworth said, compared with the $39.9 million loss during the first half of the year.
Care New England reported it expects a decision on its application to the Rhode Island Department of Health to close Memorial by Feb. 8th.
Care New England’s fiscal 2017 operating losses included:
Butler Hospital: ($2.8 million)
Kent Hospital: ($3.8 million)
Women & Infants Hospital: ($4.6 million)
Memorial Hospital: ($21.5 million)
Kent County Visiting Nurses Association: ($874,000)
The Providence Center: ($43,600)
updated 9:20 p.m. Tuesday
