NS-LIJ: Strong Q4 Saves 2014

Crain’s Health Pulse
May 1, 2015
NS-LIJ: Strong Q4 Saves 2014

The North Shore-LIJ Health System had operating income of $87.5 million last year, up 4.2% from a year earlier, following a robust fourth quarter. For the first nine months of 2014, the health system reported a 25% drop in operating income. But for the full year, operating revenue grew 6.2%, to $7.4 billion, on "increased managed care payment rates, ambulatory and physician network expansion, continued revenue cycle initiatives and [CareConnect's] health insurance premium revenue," the health system said. Operating expenses increased 6.2%, to $7.3 billion. CareConnect lost $33 million on $86 million in premium revenue in its first full year on the state insurance exchange. There was another interesting tidbit in the financials, online here: NS-LIJ disclosed a $25 million investment in Northern Westchester Hospital for "future capital expenditures." Northern Westchester, in Mount Kisco, and Phelps Memorial, in Sleepy Hollow, joined NS-LIJ on Jan. 1, 2015. The 19-hospital system's operating margin was unchanged in 2014, at 1.2%. Two member hospitals performed well. Long Island Jewish and North Shore University hospitals had operating income of $81 million and $66 million, respectively.
 

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