Reports net income of $80.1 million for year and revenue increase of 7%
March 1, 2019 (Wellesley, MA) – Harvard Pilgrim Health Care today reported a net income of $80.1 million and an operating income of $70.9 million on revenue of $3.2 billion for the year ending on December 31, 2018. For the same period in 2017, the health plan reported a net loss of $8.7 million and an operating loss of $28.3 million on revenue of $3 billion. Harvard Pilgrim’s total year-end 2018 membership was 1,194,609.
“Our strong performance in 2018 is a testament to our company’s success in strengthening the fundamentals of our business to improve our financial performance over the prior year,” said Harvard Pilgrim Chief Financial Officer Charley Goheen. “All regional markets experienced better-than-expected performance and the success of our team in managing administrative as well as pharmacy and medical expenses contributed greatly to drive value for our members and customers. Harvard Pilgrim generated higher than expected revenue by our subsidiaries Health Plans, Inc., TrestleTree, and MedWatch whose services and product offerings were strongly received in the marketplace. Harvard Pilgrim experienced a strong 2018 and we have generated great momentum for 2019.”
For the fourth quarter of 2018, Harvard Pilgrim reported a net loss of $9.8 million and an operating loss of $2.3 million on revenue of $767.6 million. In the fourth quarter of 2017, the health plan reported a net loss of $13.4 million and an operating loss of $19.8 million on revenue of $748.2 million.
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.