Fallon Health reports first quarter financial results
Worcester, Mass., May 13, 2016 ― Fallon Health today reported a net loss of $5.6 million on revenue of $298 million on a GAAP basis for the first quarter that ended March 31, 2016. Net loss includes investment and other income of $.8 million and operating loss of $6.4 million. For the same quarter last year, Fallon posted a net loss of $4.2 million on revenue of $317 million. The net loss included investment income of $2.4 million and an operating loss of $6.6 million. Membership was 212,535 as of March 31, 2016, compared with 226,527 ending March 31, 2015.
“Our numbers reflect the result of a deliberate strategy to reposition Fallon's commercial business so it better aligns with market and regulatory conditions being driven in large part by the Affordable Care Act,” said R. Scott Walker, Executive Vice President and Chief Financial Officer. “Our results also reflect the continued high cost of specialty and generic prescription drugs, and an investment portfolio performance impacted by volatility in the financial markets during the first quarter.
“As we look to the future, we continue to see growth in senior care and government programs. Fallon has invested in these programs ahead of the industry and as a result, is well-positioned to take advantage of aging demographics. One recent example is our newest Summit ElderCare site in Lowell, which is the result of a partnership with D’Youville Life & Wellness Community. Additionally, through a partnership with Weinberg Campus, Fallon now offers a variety of programs in New York State’s Erie and Niagara counties to individuals who are over the age of 21 and eligible for both Medicare and Medicaid.”
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 accredited by the National Committee for Quality Assurance for its HMO, Medicare Advantage and Medicaid products. For more information, visit www.fallonhealth.org.