Sentara sees net income climb 81% in first half of 2019

https://www.beckershospitalreview.com/finance/sentara-sees-net-income-climb-81-in-first-half-of-2019.html

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Norfolk, Va.-based Sentara Healthcare improved its operating revenues and net income in the first half of fiscal year 2019, according to unaudited financial documents

Sentara recorded total operating revenues of $3.3 billion in the six-month period ended June 30, up 6.7 percent from $3.1 billion reported in the same period a year prior. The health system said the increase was primarily driven by growth in net patient service revenue. Sentara’s expenses also increased year over year by 9.3 percent to $3.1 billion for the most recent six-month period.

Sentara’s health plan saw a $34.8 million decrease in premium and capitation revenue in the most recent six-month period, driven by a 46,000-member reduction in health maintenance organization individual enrollment. However, the decline was mostly offset by an increase in Medicaid and other membership of 48,000, thanks to the state’s recent Medicaid expansion.

Overall, Sentara saw its net operating income decline 19 percent year over year to $230.5 million, down from $284.8 million reported in the same period of fiscal 2018. After including nonoperating gains, Sentara ended the first half of the fiscal year with net income of $569.4 million, up 81.2 percent from $314.1 million recorded in the same period of the previous year.

 

 

 

11 hospitals with strong finances

https://www.beckershospitalreview.com/finance/11-hospitals-with-strong-finances-081219.html?origin=rcme&utm_source=rcme

Here are 11 hospitals and health systems with strong operational metrics and solid financial positions, according to recent reports from Moody’s Investors Service, Fitch Ratings and S&P Global Ratings.

1. Altamonte Springs, Fla.-based AdventHealth has an “Aa2” rating and stable outlook with Moody’s. The health system has strong margins, low operating leverage and solid cash levels, according to Moody’s.

2. Children’s Healthcare of Atlanta has an “Aa2” rating and stable outlook with Moody’s. The health system has strong margins, and its good management discipline and detailed planning capabilities will drive consistent operating performance, according to Moody’s.

3. Falls Church, Va.-based Inova Health System has an “Aa2” rating and stable outlook with Moody’s. The health system has a leading market position in the broader northern Virginia region and strong operating cash flow margins, according to Moody’s.

4. IHC Health Services, the borrowing group of Salt Lake City-based Intermountain Healthcare, has an “Aa1” rating and stable outlook with Moody’s. Intermountain’s exceptional credit quality is supported by low debt levels, strong cash levels, solid operating performance and its leading market position, according to Moody’s.

5. Oakland, Calif.-based Kaiser Permanente has an “AA-” rating and stable outlook with Fitch and S&P. Kaiser has a robust integrated business model, strong operational cash flow and ample unrestricted reserves, according to S&P.

6. Bryn Mawr, Pa.-based Main Line Health has an “Aa3” rating and stable outlook with Moody’s. The health system has a leading market position in the Philadelphia suburbs, strong balance sheet measures and a modest debt load, according to Moody’s.

7. Chicago-based Northwestern Memorial HealthCare has an “Aa2” rating and stable outlook with Moody’s. The health system has a prominent market position in the broader Chicago region because of its strong brand, and its consolidated operating model and comprehensive IT systems will allow it to execute growth strategies while maintaining good margins, according to Moody’s.

8. Renton, Wash.-based Providence St. Joseph Health has an “Aa3” rating and stable outlook with Moody’s and an “AA-” rating and stable outlook with Fitch. The health system has a large service area, a revenue base of more than $24 billion and an integrated care delivery platform, which includes health plans, employed physicians and inpatient and outpatient services, according to Moody’s.

9. Broomfield, Colo.-based SCL Health has an “AA-” rating and stable outlook with S&P. The health system has ample liquidity and a healthy balance sheet, according to S&P.

10. San Diego-based Scripps Health has an “Aa3” rating and stable outlook with Moody’s. The health system has strong market share within San Diego County, a history of strong and stable management, and favorable balance sheet measures, according to Moody’s.

11. Tahoe Forest Hospital District, which operates Tahoe Forest Hospital in Truckee, Calif., and Incline Village (Nev.) Community Hospital, has an “Aa3” rating and stable outlook with Moody’s. The hospital district has a healthy cash position, low debt burden and a large and increasing tax base, according to Moody’s.

 

Kaiser’s net income surges to $2B in Q2

https://www.beckershospitalreview.com/finance/kaiser-s-net-income-surges-to-2b-in-q2.html

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Oakland, Calif.-based Kaiser Permanente’s revenue, operating income and net income for its nonprofit hospital and health plan units increased year over year in the second quarter of 2019.

The healthcare giant reported operating revenue of $21.4 billion in the second quarter of this year, up 9.3 percent from $19.6 billion in the same period a year prior.

Kaiser’s health plan unit — as well as favorable accounting estimates compared to the second quarter of 2018 — contributed to the growth. Kaiser saw health plan membership increase from 12.2 million as of June 30, 2018, to 12.3 million as of June 30.

As Kaiser’s revenue grew, so did operating expenses. Expenses climbed from $19.3 billion in the second quarter of 2018 to $20.3 billion in the second quarter of 2019.

With operating expenses accounted for, Kaiser reported operating income of $1.1 billion in the second quarter of 2019. That’s up from $345 million in the first quarter of 2018.

Kaiser’s nonoperating income was $930 million in the second quarter of this year, up from $308 million in the same period a year prior.

The boost was attributable to strong investment performance, along with an accounting change that took effect Jan. 1, the organization said. Under the accounting change, Kaiser reported unrealized gains on certain equities as net nonoperating income, which added $223 million to the organization’s nonoperating income and expenses in the second quarter of 2019.

Kaiser ended the second quarter of 2019 with net income of $2 billion. That’s up more than 213 percent from its net income of $653 million in the first quarter of last year.

“Strong results are essential for us to deliver on our nonprofit mission to improve affordability while advancing our high-quality care and service for our members and customers. This also allows us to make strategic investments in technology, people and care facilities,” said Kaiser Executive Vice President and CFO Kathy Lancaster. “At the same time, it’s critical we remain fiscally vigilant in today’s increasingly competitive environment with growing industry and financial pressures.”