North Shore Medical Center Suffers Over $30 Million in Losses, State Report Finds

SALEM, MA — North Shore Medical Center (NSMC) continues to suffer financially, as a state report revealed Thursday that the hospital suffered over $30 million in losses during the 2015 fiscal year.

According to the Massachusetts Acute Hospital Financial Performance Report by the Center for Health Information and Analysis (CHIA), NSMC suffered $36 million in losses in the 2015 Fiscal year. The hospital's financial performance trends collected by CHIA indicate that NSMC lost $22 million in losses in the 2014 fiscal year and $20 million in the 2013 fiscal year.

A Salem News report, citing NSMC president Robert Norton who indicated that the hospital has been losing money over the last several years due to treating a high number of patients who are on Medicaid and Medicare.

The report indicates that patients with Medicaid and Medicare account for over 60 percent of North Shore Medical Center's business.

The profitability of acute hospitals across the state declined in the 2015 fiscal year compared to the 2014 fiscal year, with median total margins decreasing from 4.2 percent in FY14 to 3.7 percent in FY 15. However, 80 percent or 52 of the state's acute care hospitals were still profitable.

Partners HealthCare, the parent organization of NSMC, announced in 2015 that it will close Union Hospital in Lynn and consolidate services at Salem Hospital.

To view the complete CHIA report, click here.

North Shore Medical Center did not respond to requests for comment.

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