Lifespan, Care New England report losses in fiscal 2015

LIFESPAN in fiscal 2015 reported an increase in operating revenue and operating expenses compared with the prior year, but a loss when it had previously posted a profit.
LIFESPAN in fiscal 2015 reported an increase in operating revenue and operating expenses compared with the prior year, but a loss when it had previously posted a profit.

(Updated 4:40 p.m. and 8:42 a.m.)
PROVIDENCE – The Lifespan nonprofit health system in fiscal 2015 reported an increase in operating revenue and operating expenses compared with the prior year, but a loss when it had previously posted a profit. Similarly, Care New England saw its 2014 gain turn into a loss in 2015.

Lifespan detailed its finances in its annual report, showing $1.9 billion in operating revenue, a 5 percent increase over the year, as well as $1.94 billion in operating expenses, a 7.1 percent increase compared with fiscal 2014.

It reported a $9.5 million net loss, while in 2014 it reported net income of $7.4 million. It also reported a $32.6 million loss from operations, while in 2014 it reported income from operations of $5 million.

Net patient service revenue totaled $1.7 billion, a 4.2 percent increase, while assets totaled $2.4 billion, a 1.5 percent increase. Research funding revenue totaled $78.4 million, which represented a 3.9 percent decline.

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Lifespan spent $28.2 million on charity care, significantly less than the prior year when charity care spending totaled $45.4 million. It also spent $17.3 million on research, essentially the same as 2014’s spending, and $31 million on subsidized health services, 18.6 percent more than in 2014.

Lifespan reported 263 more employees in 2015 at 13,973, and the same number of licensed beds at 1,155.
Lifespan hospitals also fielded 240,380 emergency room visits last year and 591,393 outpatient visits compared with 239,117 emergency room visits and 431,474 outpatient visits last year.
The annual report opened with a message from Dr. Timothy J. Babineau, president and CEO of Lifespan, and Lawrence A. Aubin Sr., chairman of the board of directors. It said 2015 was a year of change for health care, and not just for Lifespan, but for hospitals and health systems across the country.
“We continued to formalize partnerships with like-minded organizations that share our values of patient-centered, high-value care,” it read.

Lifespan’s three teaching hospitals are Rhode Island Hospital and its Hasbro Children’s Hospital, The Miriam Hospital and Bradley Hospital. Rhode Island Hospital is the main teaching hospital of The Warren Alpert Medical School of Brown University. The three teaching hospitals train approximately 600 residents and fellows every year in more than 70 programs.

Late last year, Lifespan, Brown University, Care New England, the University of Rhode Island, and the Providence VA Medical Center forged a neuroscience research agreement that could yield such benefits as the co-funding of pilot grant programs, cross-institutional appointments, educational opportunities for researchers and staff, and the sharing of resources.

In other news, Care New England also released its 2015 annual report, showing a 6.5 percent increase in revenue to $1.1 billion. Its total margin reflected a loss of $27.8 million, compared with $11.1 million in profit in 2014; the operating loss for 2015 was $1.8 million, compared with an operating margin of $8.5 million in 2014.

The chain’s losses are a major factor in its efforts to consolidate some of its services, including the closure of the Memorial Hospital of Rhode Island’s Birthing Center, which has engendered significant push-back from the Pawtucket community.

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