CHS stock plummets nearly 50% on Q3 losses

http://www.modernhealthcare.com/article/20161027/NEWS/161029917

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Investor confidence in Community Health Systems plummeted Thursday as losses in the third quarter previewed by the company after the close of markets Wednesday caused its stock to fall nearly 50%.

CHS’ stock closed the day at $5.05 per share, down $4.98 per share or 49.65%.

In a preview of third-quarter results to be announced next week, Franklin, Tenn.-based CHS Wednesday reported a loss from continuing operations before income taxes of $83 million compared with income from continuing operations of $121 million in the third quarter of 2015.

Hospital divestitures, lower-than-expected volumes and reductions to reimbursement from state supplemental programs combined to cause revenue to fall in the quarter to $4.4 billion from $4.8 billion in the year-earlier quarter, the company said.

CHS for the third straight quarter lowered its EBITDA guidance. It is now saying that earnings before income tax, depreciation and amortization in 2016 are expected to be in a range of $2.2 billion to $2.8 billion compared with last quarter’s estimate of $2.4 billion to $2.6 billion. The chain is the nation’s second-largest investor-owned hospital company with 159 hospitals.

A CHS spokeswoman did not respond to a request for comment about Thursday’s stock losses.

FDA zeroes in on hospitals that underreport medical device-related injuries, deaths

http://www.healthcarefinancenews.com/news/fda-zeroes-hospitals-underreport-medical-device-related-injuries-deaths

FDA inspected 17 hospitals after events had been reported to other entities, found no corresponding reports filed with them.

Cleveland Clinic names top 10 medical innovations to expect in 2017

http://www.healthcarefinancenews.com/slideshow/cleveland-clinic-names-top-10-medical-innovations-expect-2017?mkt_tok=eyJpIjoiWlRkaE16VTBPRGhrTmpWbSIsInQiOiIxRk44S3JKdEd3Mzl5czNscEJZNjI1N210RWE0b0RxNWd3RHhoZUg2TXJCM3U2QnZJWm1VcFhMS2daQ1pmRzEyTG5DU2E0cWFCdGtWQlJKS0N0NE51Y2FubWdZbWptcTRhVHRZaTZJNDM1VT0ifQ%3D%3D

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Healthcare mergers and acquisitions in 2016: Running list

http://www.healthcarefinancenews.com/slideshow/healthcare-mergers-and-acquisitions-2016-running-list?mkt_tok=eyJpIjoiWlRkaE16VTBPRGhrTmpWbSIsInQiOiIxRk44S3JKdEd3Mzl5czNscEJZNjI1N210RWE0b0RxNWd3RHhoZUg2TXJCM3U2QnZJWm1VcFhMS2daQ1pmRzEyTG5DU2E0cWFCdGtWQlJKS0N0NE51Y2FubWdZbWptcTRhVHRZaTZJNDM1VT0ifQ%3D%3D

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Expanding role of hospitalist PAs achieves similar outcomes at lower cost, study finds

http://www.healthcarefinancenews.com/news/expanding-role-hospitalist-pas-achieves-similar-outcomes-lower-cost-study-finds?mkt_tok=eyJpIjoiWlRkaE16VTBPRGhrTmpWbSIsInQiOiIxRk44S3JKdEd3Mzl5czNscEJZNjI1N210RWE0b0RxNWd3RHhoZUg2TXJCM3U2QnZJWm1VcFhMS2daQ1pmRzEyTG5DU2E0cWFCdGtWQlJKS0N0NE51Y2FubWdZbWptcTRhVHRZaTZJNDM1VT0ifQ%3D%3D

Though more medical centers are relying on hospitalists — hospital-based internal medicine specialists who coordinate the complex care of inpatients — a new study suggests that hospitals can safely lower the cost of hospitalist programs without sacrificing quality of care

The 18-month study published in the Journal of Clinical Outcomes Management compared two hospitalist groups — one with a high physician assistant-to-physician ratio (“expanded PA”) and one with a low PA-to-physician ratio (“conventional”) — and found no significant differences in the important clinical outcomes achieved by both groups.

The study saw little difference in patient mortality, hospital readmissions within 30 days, lengths of stay or specialty consultant use among patients treated by the expanded PA group and those treated by the conventional group.

From January 2012 to June 2013, the researchers implemented an expanded PA staffing model to see larger numbers of adult patients alongside physicians. The expanded PA group consisted of three physicians and three PAs, with PAs caring for 14 patients each day. At the same time, a conventional hospitalist group composed of nine physicians and two PAs had PAs caring for nine patients each day. Physicians in both groups cared for approximately 13 patients a day.

Vermont all-payer ACO model approved, will count for MACRA

http://www.healthcarefinancenews.com/news/vermont-all-payer-aco-model-approved-will-count-macra

Under model, rates paid to a given provider are set so that all third parties pay the same price for services to particular provider.