North Shore-LIJ’s mar­gin dinged by weather, in­surance startup

Modern Healthcare - - REGIONAL NEWS - —Bob Her­man

North Shore-Long Is­land Jewish Health Sys­tem bat­tled through a slug­gish first half of the year, with the Great Neck, N.Y.-based health sys­tem still feel­ing the fi­nan­cial chill from last year’s icy, bit­ter-cold win­ter.

The weather led to de­creases in pa­tient vol­umes, es­pe­cially for sched­uled pro­ce­dures, of­fi­cials said in a fi­nan­cial dis­clo­sure to bond­hold­ers. It also faced higher tem­po­rary staffing, snow re­moval and util­ity costs.

North Shore-LIJ is still in the early stages of launch­ing and run­ning its own health in­surance op­er­a­tion, North Shore-LIJ CareCon­nect, which started of­fer­ing com­mer­cial and Med­i­caid man­aged-care plans last year. The plans are avail­able on and off New York’s in­surance ex­change, cre­ated un­der the Pa­tient Pro­tec­tion and Af­ford­able Care Act.

North Shore-LIJ is still work­ing to staff and build its in­surance arm, which has driven up ex­penses, ex­ecu- tives said. In the first half of 2014, North Shore-LIJ’s in­surance com­pa­nies brought in $32 mil­lion in pre­mium rev­enue.

North Shore-LIJ’s op­er­at­ing mar­gin in the first six months of this year was 1.1%, down from 1.7% in the same pe­riod in 2013. Rev­enue in­creased 4.9% to $3.6 bil­lion as more pa­tient vol­ume shifted to out­pa­tient set­tings. How­ever, ex­penses in­creased at a faster 5.5% clip, leav­ing the sys­tem with a $38.1 mil­lion op­er­at­ing sur­plus. That’s down 33% from $57.2 mil­lion in the first half of 2013.

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