Combined Organization of Tufts Health Plan and Harvard Pilgrim Health Care Announces First Quarter Financial Results
Results are in-line with expectations
Watertown/Wellesley, MA — The combined organization of Tufts Health Plan and
Harvard Pilgrim Health Care today reported an adjusted net loss of $26.3 million for the first quarter ending March 31, 2021. Adjusted net loss includes an operating loss of $38.2 million and investment income of $15.3 million, excluding market-to-market investment gains and losses on equity securities, with revenues of $2.3 billion. Membership was 2.3 million. Unrealized gains on equity securities for the first quarter were $31.5 million.
“The first quarter results of the combined organization are in-line with our expectations,” said Umesh Kurpad, chief financial officer of the combined organization. “We continue to see significant financial impacts from COVID-19 treatment and vaccine administration costs, as well as pressure in our government-sponsored programs. Total membership is ahead of plan and our membership retention remains strong. We continue to make progress on the integration work pertaining to our combined organization and look forward to sharing updates over the coming months.”
These financial results compared to the first quarter of 2020, when the combined organization reported an adjusted net loss of $20.4 million, which comprised an operating income loss of $33.3 million and investment income of $13.5 million, excluding market-to-market investment gains and losses on equity securities, with revenue of $2.3 billion. Membership was 2.3 million at the end of the first quarter 2020.
The combined organization continues to mobilize around the COVID-19 pandemic to provide support to its members, employer groups, employees and the communities it serves. To reach traditionally underserved communities in several Massachusetts cities and towns, the combined organization initiated ‘Mobile Vax’, an initiative to reach and vaccinate more people for COVID-19, particularly in Black and Brown communities and non-English speaking populations. The mobile clinics aim to administer up to 500 vaccinations per day in East Boston, Chelsea, Holyoke, Chicopee and other communities throughout the state over the next two months.