CareConnect 1Q Revenue Spikes

Crain's Health Pulse
May 12, 2015
CareConnect 1Q Revenue Spikes

The North Shore-LIJ Health System posted $1.1 million in operating revenue in the first quarter of 2015, a very different financial picture from the year-earlier period, when it registered a $10.4 million loss. In 1Q, net patient service revenue was $1.7 billion, up 14%, and physician practice revenue jumped 18%, to $261 million. Operating expenses rose 17%. Inpatient discharges (excluding newborns) rose 1.1% last quarter from a year earlier. Emergency department visits were up 6.6% following the July 2014 opening of the Lenox Hill HealthPlex in Manhattan. Other outpatient visits and encounters rose 14.7%, owing to expanded radiology and imaging services and the opening of new imaging centers. The acquisitions of Phelps Memorial and Northern Westchester hospitals hit the books as an "inherent contribution" of $266 million, which represented the estimated fair value of the hospitals' assets minus their liabilities. North Shore-LIJ's insurance affiliate, CareConnect, nearly quadrupled its revenue during in the first quarter of 2015, compared with the year-earlier period. But the fledgling insurer is still losing money, according to financial statements. CareConnect earned premium revenue of $44 million in the first quarter—up from $13 million in 2014's first quarter—but lost $6.5 million.

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