2d-quarter revenue up at Partners HealthCare

Partners HealthCare System Inc. yesterday reported operating income of $30 million on revenue of $1.8 billion for its second fiscal quarter, down from income of $35 million on revenue of $1.6 billion in the year-ago period. Operating margin for the quarter declined to 1.7 percent from 2.2 percent a year ago.

Peter Markell, vice president of finance, said that while revenue growth was in line with projections, more revenue came from medical than surgical cases. In addition, he said, expenses had increased, including fuel and utility costs, contractual nursing wages, and the cost of some medical supplies whose raw materials include oil.

For the year, Partners, the state's largest hospital network, is aiming for a 2 percent operating margin on operating revenue of $6.5 billion to $7 billion, he said.

After posting a $3 million loss on investments during the quarter, Partners had net income of $27 million compared to a net gain of $103 million in the same period last year.

"We think the rest of the year will be somewhat challenging but we hope to hit our budget," said Markell. "It will depend on patient volume and the mix of medical and surgical cases."

Jeffrey Krasner can be reached at krasner@globe.com.