Proves company’s transformation is getting positive results
Schenectady - MVP Health Care (MVP) ended 2015 with a significant increase in operating margin over 2014, due in large part to the successful realignment of its product portfolio, the synergies realized as part of its acquisition of Hudson Health Plan, and controlled administrative costs.
MVP reported gross revenue of $2.92 billion in 2015 and net income of $42.3 million, up from an operating loss of nearly $12.4 million in 2014, enabling it to close out the year with a solid operating margin of 1.4 percent.
“The hard work we’ve done, diversifying our product portfolio and reducing administrative costs by more than $30 million in two years, has had a significant impact on our bottom line,” said Chief Operating Officer Chris Del Vecchio. “We have focused efforts to improve our processes and our technology infrastructure and those efforts are delivering strong results that ultimately improve the services we provide to our members.”
In addition, the insurer credits value-based contracting with providers and improvements to its pharmacy benefits program with helping it achieve significant saving over the previous year.
“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,” said Del Vecchio.