Northwell’s Q1 results show recovery, with lower operating deficit
During the first three months of the year, Northwell Health saw patient revenue improve 10%, to $2.5 billion, compared to the same period of 2020. Although the New Hyde Park–based health system remained in the red during the first quarter, its deficit shrank.
During the first quarter, Northwell had more than $22 million in assistance from CARES Act funds. Its other operating revenue increased 28%, to $306 million, compared to the same quarter of the previous year. Total operating revenue in the first quarter grew 13% year on year, to $3.5 billion.
Expenses also increased during the first three months of this year, compared to the first quarter of 2020. Salaries were up 7%, to $1.8 billion; benefits grew 6%, to $428 million; and supplies jumped 14%, to $1.1 billion. Total operating expenses climbed 9%, to $3.5 billion.
The health system had a total operating deficit of $43 million in the first quarter, compared to a deficit of $141 million in the same quarter of last year, when Northwell’s operating margin was a loss of 1%.
A spokeswoman said the health system’s operating loss through the first quarter was in line with expectations. The loss accounted for the second wave of COVID-19 cases that hit the city as well as expenses associated with vaccination efforts, she said.
However, Northwell posted strong gains in its nonoperating activities, which boosted its overall financial standing. Investment income in the first quarter more than doubled, to $86 million, and the health system also saw a gain of $16 million in investments it holds in other companies, also known as equity method investments. This compares with a loss of $584 million in its equity method investments in the first quarter of 2020.
Including all nonoperating activities, Northwell had a gain of $297 million in the first quarter, compared with a loss of $710 million during the same quarter last year.
The health system has achieved an approximately $256 million increase in net assets. Its net assets as of March 31 were $5.1 billion.