Tufts reports improved margin for quarter
Tufts Medical Center in Boston improved its financial performance in the third quarter of its fiscal year thanks to higher outpatient volume and tightly managing its expenses.
Tufts registered a $16.9 million surplus on revenue of $177.3 million for the quarter ended June 30, an improvement from the $1.8 million surplus on $164.1 million in revenue for the year-ago, the hospital reported in an earnings statement. Higher operating income and higher investment income contributed to those results.
Fitch Ratings affirmed a BBB rating with a stable outlook on two series of Tufts bonds.
The 284-bed medical center still has a negative operating margin for the first nine months of its fiscal year, which ends Sept. 30. But most of its challenges—including weak patient volume and several one-time expenses—came in the first quarter of the fiscal year, Fitch said in its ratings report.
At the same time, Tufts’ expenses have increased only 1.1% year over year in the nine-month period and volumes, at least on the outpatient side, improved in early 2014.
Admissions in the third quarter declined 11.3% year over year but outpatient visits increased 3.7%. Emergency room visits increased 4.6%.