Partners' EHR switch leads to Q2 income drop
Partners HealthCare, the largest provider in Massachusetts, reported second quarter operating income of $5.3 million, compared with $71.2 million in the prior-year period.
The results for the quarter include a one-time, non-cash charge of $110 million related to Partners’ decision to write off its current, homegrown clinical information system. The organization will instead invest $600 million to $700 million in a new EHR system. According to a release, “this strategic direction will allow for better coordinated patient care as Partners moves into a new healthcare environment that will include accountable care organizations, new payment models and a focus on population health management.”
Exclusive of the one-time charge, income from operations was $115 million. In the comparable 2011 quarter, Partners reported income from operations of $71 million. Partners reported an overall gain of $132 million for the quarter, down from an overall gain of $166 million in the comparable 2011 quarter. Non-operating income, which includes gains and losses on investments and interest rate swaps as well as philanthropy, was $127 million in the 2012 quarter. In the comparable 2011 quarter, Partners reported non-operating income of $95 million.
Partners' operating revenue for the quarter grew 8 percent to $2.2 billion, and its patient service revenue jumped 9 percent to $1.7 billion, "reflecting increases in patient activities and rates," according to the Partners announcement.
The results for the quarter include a one-time, non-cash charge of $110 million related to Partners’ decision to write off its current, homegrown clinical information system. The organization will instead invest $600 million to $700 million in a new EHR system. According to a release, “this strategic direction will allow for better coordinated patient care as Partners moves into a new healthcare environment that will include accountable care organizations, new payment models and a focus on population health management.”
Exclusive of the one-time charge, income from operations was $115 million. In the comparable 2011 quarter, Partners reported income from operations of $71 million. Partners reported an overall gain of $132 million for the quarter, down from an overall gain of $166 million in the comparable 2011 quarter. Non-operating income, which includes gains and losses on investments and interest rate swaps as well as philanthropy, was $127 million in the 2012 quarter. In the comparable 2011 quarter, Partners reported non-operating income of $95 million.
Partners' operating revenue for the quarter grew 8 percent to $2.2 billion, and its patient service revenue jumped 9 percent to $1.7 billion, "reflecting increases in patient activities and rates," according to the Partners announcement.
Beth Walsh,
Editor
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.