(Wellesley, MA) – Harvard Pilgrim Health Care today reported a net loss of $8.7 million and an operating loss of $28.3 million on revenue of $3.0 billion for the year ended December 31, 2017. For the same period in 2016, the health plan reported a net loss of $48.5 million and an operating loss of $91.3 million on revenue of $3.1 billion.
“Following a difficult 2016, our financial performance is improving significantly,” said Harvard Pilgrim’s Chief Financial Officer Charley Goheen. “While we are reporting an operating loss for 2017, our results were better than what we budgeted as we continue to make investments to diversify our business both geographically and by product offering. We have also undertaken a number of initiatives to improve member experience and member health outcomes as we manage medical expense trend and administrative costs.
“We continue to hold a national leadership position in negotiating pharmacy contracts based on real life patient outcomes. These contracts hold the promise of curbing the escalation in pharmacy costs, while improving the health of our members. However, uncertainty about the national health policy creates challenges for the health insurance industry,” Goheen said.
For the fourth quarter of 2017, Harvard Pilgrim reported a net loss of $13.4 million and an operating loss of $19.8 million on revenue of $748.2 million. In the fourth quarter of 2016, the health plan reported a net loss of $1.6 million and an operating loss of $33.5 million on revenue of $740 million.
Harvard Pilgrim’s total membership stands at 1,228,864 as compared to 1,281,246 year-end 2016.
About Harvard Pilgrim Health Care
Harvard Pilgrim and its family of companies provide health benefit plans, programs and services to more than 3 million customers in New England and beyond. A leading not-for-profit health services company, we guide our members – and the communities we serve – to better health.
Founded by doctors nearly 50 years ago, we’re building on our legacy. In partnership with our expansive network of doctors and hospitals, we’re improving health outcomes and lowering costs through clinical quality and innovative care management.
Our commitment to the communities we serve is driven by the passion of the Harvard Pilgrim Health Care Foundation. Through its work, low- and moderate-income families are gaining greater access to fresh, affordable food — a cornerstone to better health and well-being.
Harvard Pilgrim Health Care