In the rapidly evolving health care cost discussion, lots of folks ask: “How small is Partners?” This week’s Boston Business Journal provides this year’s answer:
Higher labor costs put a dent in Partners HealthCare’s 2007 operating income, but the state’s largest hospital group still made money for the fiscal year.
Partners, which includes Massachusetts General and Brigham and Women’s hospitals, reported $106 million in income from operations, off of $6.5 billion in operating revenue, compared to $133 million in operating income off of $5.9 billion in operating revenue in 2006. Partners’ operating expenses jumped by $568 million to $6.4 billion in 2007, driven by high labor costs including wages and more expensive health and pension benefits.
Overall, Partners made $583 million in 2007, compared to $625 million in 2006, including revenue from royalties and other one-time payments. Partners’ fourth quarter generated $11 million in income from $1.7 billion in operating revenue, up from $24 million in income from operations off of $1.5 billion in operating revenue.
Partners also said it experienced a $572 million shortfall for its 2007 fiscal year in payments from Medicare, Medicaid and a pool of free care money used to pay for uninsured residents. Partners said the money failed to cover actual costs.
