The Boston-based healthcare organization also absorbed $352 million in Medicare, Medicaid, and Health Safety Net shortfalls during Q1 2020.
Partners HealthCare reported an operating income of $45 million during Q1 2020, down from $114 million in Q1 2019, according to recent financial documents.
Partners saw its operating income from healthcare provider activity drop from $118 million in Q1 2019 to $55 million in Q1 2020, while its insurance arm generated an operating loss of $10 million.
The Boston-based healthcare organization also absorbed $352 million in Medicare, Medicaid, and Health Safety Net shortfalls, a 5% increase year-over-year which the provider attributed to changes in government reimbursement rates.
C-suite perspective:
"We continue to execute well on resource management and revenue optimization efforts while making investments in new digital health tools and more convenient outpatient locations in order to improve the patient experience," Peter K. Markell, CFO of Partners HealthCare, said in a statement. "When taking into account these major new investments in patient care, as well as higher benefits costs, our hospitals and physician practices continue to generate financial results that are in-line with expectations, all while delivering world class patient care."
On a positive note, the system did report a $546 overall gain in Q1 compared to a $463 million loss this time last year.
Additionally, Partners reported that revenue for provider activity grew by 6% to $3.4 billion in 2020, research revenue increased by 4%, and "other operating revenue" grew by 16% thanks to the strength of the pharmacy segment.
Related: Partners Posts $623M Gain in Q2 2019
However, several expenses rose during 2020 which hampered revenue growth for Partners.
Compared to Q1 2019, operating expenses attributable to provider activity rose 8%, employee compensation and benefits increased 9%, and supplies and other expenses jumped 9%.
The financials were the first to be released by Partners since the organization announced plans to rebrand itself in December.
According to the company, Partners will begin transitioning to a new name: Mass General Brigham.
Related: Why Partners HealthCare Rebranded as Mass General Brigham
Partners also released its financials about one month after announcing a partnership with One Medical, a San Francisco-based primary care startup.
Related: Partners Grows Physician Presence With One Medical Partnership
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.