After trailing red ink for the previous two years, MVP Health Care finished 2015 with a $42.3 million net surplus on revenues of $2.9 billion, MVP officials said Monday.
In 2014, MVP reported a $12.4 million loss, a 9 percent improvement on its $13.6 million 2013 loss. It reported revenues of $2.9 billion in 2014 and $2.5 billion in 2013.
Chief Operating Officer Christopher Del Vecchio attributed the Schenectady-based health plan’s improved financial picture to a product line shift and to cost-cutting efforts.
Starting in 2013, when it merged with the Tarrytown, Westchester County-based Hudson Health, MVP has shifted its government-plan emphasis from its MVP Gold Medicare Advantage product to Hudson Health’s specialty, Medicaid managed care. It also has gone more heavily into the individual market, taking 6 percent of the state’s 2.1 million member health exchange market.
“We entered 2015 feeling very positive. We were confident that by balancing our product portfolio, embracing the individual market segment and the exchanges, and investing in a multi-year transformation to better serve our members, we would end the year in a strong position,” Del Vecchio said.
Adoption of a value-based provider reimbursement model and a tightening prescription drug benefits also had helped MVP improve its bottom line, Del Vecchio added.
Date: April 4, 2016