Fallon Health reports first quarter financial results
Worcester, Mass., May 15, 2014 - Fallon Health today reported a net loss of $1.5 million on revenue of $295 million on a GAAP basis for the first quarter that ended March 31, 2014. Net loss includes investment and other income of $1.5 million and operating loss of 3.0 million. For the same quarter last year, Fallon posted a net loss of $0.2 million on revenue of $307 million. The net loss included investment income of $2.6 million and an operating loss of $2.8 million. Membership was 226,195 as of March 31, 2014, compared with 227,620 ending March 31, 2013.
“Results for the first quarter are consistent with our expectations and reflect the significant investments we’ve made including the specific costs incurred related to compliance with federal and state health care reform and also to the significant challenges encountered with the Connector website,” said R. Scott Walker, Fallon Executive Vice President and Chief Financial Officer. “In addition to meeting mandated requirements, Fallon continues to make strategic investments to strengthen our ability to meet the needs of the diverse communities we serve. Investments in technology infrastructure, care management, new product development, network development and geographic expansion are among our growth and internal enhancements.”
About Fallon Health
Founded in 1977, Fallon Health is a leading health care services organization that supports the diverse and changing needs of those we serve. In addition to offering innovative health insurance solutions and a variety of Medicaid and Medicare products, we excel in creating unique health care programs and services that provide coordinated, integrated care for seniors and individuals with complex health needs. Fallon has consistently ranked among the nation’s top health plans, and is the only health plan in Massachusetts to have been awarded “Excellent” Accreditation by the National Committee for Quality Assurance for its HMO, Medicare Advantage and Medicaid products.