Lahey Hospital and Medical Center Profits Decrease Over 50 Percent in Fiscal Year 2015, State Report Finds

BURLINGTON, MA — The Massachusetts Center for Health Information and Analysis (CHIA) released its annual Massachusetts Acute Hospital Financial Performance Report for the 2015 fiscal year on Thursday, and Burlington's Lahey Hospital and Medical Center (LHMC) saw a decrease in profits of over 50 percent from the 2014 fiscal year to the 2015 fiscal year.

While the hospital is still profitable, the CHIA report indicates that profits are down by $35.8 million or 53.3 percent from $67.2 million in FY2014 to $31.4 million in FY2015. LHMC's total margin also decreased 4.3 percentage points from 8.1 percent in FY2014 to 3.8 in FY2015.

In an email to Patch, Lahey Health issued a statement regarding the CHIA report.

"We are confident that Lahey Health’s model of providing high-quality, affordable care in the communities we serve ensures our continued financial strength and growth," the statement read.

However, fellow Lahey Health member Winchester Hospital saw a significant growth in profits over the fiscal year. Winchester Hospital recorded $50.3 million in profit in FY2015, which represents an increase of 498.8 percent or $41.9 million over FY2014's profits of $8.4 million.

LHMC's decrease in total margin is consistent with decreases seen in the state's eight other teaching hospitals. The CHIA report indicates that teaching hospitals had a median total margin of 4.2 percent in FY2015, four percentage points lower than FY2014's median total margin of 8.2 percent.

Despite these decreases, median total and operating margins for both LHMC and the state's teaching hospitals were higher than the statewide average.

To view the most recent CHIA report, click here.

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