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