Dana-Farber Cancer Institute reported an operating loss of $36.8 million for 2017, compared to a gain of $29.7 million the year before.
Profits, or revenues over expenses remained on the plus side, at $46 million for the first quarter of 2018 ending Dec. 31, and $21 million for the year. This compares to net income in 2016 of $36.8 million.
But expenses increased, Dana-Farber said in a March 12 statement.
They were attributable to unbudgeted expenses associated with a CMS survey, the health system said, without elaborating, an elevated level of insurer payment denials following a system conversion and the Medicare payor mix growing by 3 percent, which impacted revenue.
Operating expenses were $403 million, compared to $364 million for the first quarter of 2016, a 10.5 percent rise.
General administrative and plant expenses accounted for $6.8 million or 8.4 percent of the increase, the report said.
Revenue increased by 12.9 percent for the first quarter of 2018, to $437 million. Patient care revenue accounted for $40.1 million, a 17 percent increase, attributable to strong patient volume and pharmacy growth.
An increase in funding for clinical trials and commercial agreements increased research revenues by $6.6 million, a 6.5 percent over 2017.
Proceeds from gifts, such as what is generated by the Pan Mass Challenge and other events, increased by $3.2 million.
Direct patient care expenses increased to $193 million during the first quarter, up from $166 million during the same quarter the year before. For the year, Dana-Farber reported $717 million in direct patient care expenses, compared to $624 million during the previous year.
Outpatient clinic visits increased to 85,364 during the quarter, compared to 81,089 the year before and for the year, to 328,591 visits compared to 321,900 in 2016.
Inpatient admissions were ahead for the quarter, 321 compared to 292 for the quarter last year, but were down for the year, 1,044 compared to 1,280 in 2016.
For the year, Medicare made up 31 percent of inpatient revenue, and 40 percent of outpatient revenue; Medicaid, 9 percent inpatient and 7 percent outpatient; other 36 percent and 28 percent and Blue Cross, 23 and 23 percent, respectively.
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com