Net income falls at Fallon
Although it finished 2013 with an operating loss, Fallon Health reported net income of $13.2 million last year, thanks to nearly $16 million in investments and other income, the Worcester-based health care services organization said.
Fallon, which recently changed its name from Fallon Community Health Plan, said it earned $13.2 million last year on revenue of $1.3 billion. But while revenue rose 8 percent during the year, from $1.2 billion in 2012, net income fell from $15.3 million, according to a statement that was also filed with the Massachusetts Division of Insurance on Friday.
Investments and other income of $15.7 million more than negated a $2.5-million operating loss for the year, Fallon said.
R. Scott Walker, Fallon’s executive vice president and CFO, said the results reflected what it called a significant one-time investment of about $7 million in its subsidiary, Fallon Total Care, a pilot program that began providing services to patients eligible for Medicare and Medicaid, and who are between the ages of 21 and 64, in the latter half of 2013.
Fallon also said its membership rolls grew by close to 2.5 percent, from 223,235 to 228,809, it said. The organization cited the launch of Fallon Total Care, with more than 500 enrollees in Hampden, Hampshire and Worcester counties, while membership in NaviCare, a program available to members over 65 years old, more than doubled.
Last November, Fallon laid off 62 workers – 6 percent of its workforce – citing “challenges” in a changing health care industry.
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