Tag Archives: Epic EHR Implementation

Temple University Health System’s finances improve as Epic install costs shrink

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https://www.beckershospitalreview.com/finance/temple-university-health-system-s-finances-improve-as-epic-install-costs-shrink.html

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Philadelphia-based Temple University Health System saw its financial position improve in the 12 months ended June 30, according to recently released unaudited financial documents.

The health system reported revenues of $1.84 billion in fiscal year 2018, up from $1.75 billion in the year prior. The increase was attributable in part to higher net patient service revenue. Temple said inpatient revenue grew year over year due to increased acuity and improved payer mix at Temple University Hospital, and that higher outpatient revenue was attributable to growth of TUH’s outpatient pharmacy and higher outpatient volumes.

The health system’s operating expenses climbed 4.7 percent year over year to $1.83 billion in fiscal year 2018. Higher expenses related to supplies, pharmaceuticals, salaries and faculty support primarily drove the growth. However, those expenses were partially offset by lower costs attributed to TUH’s implementation of the Epic EHR system that took place in fiscal year 2017. The health system said it spent $15.1 million in fiscal 2017 on staffing needs related to the Epic go-live.

The health system ended the most recent fiscal year with operating income of $17.23 million, compared to operating income of $471,000 in the year prior, according to the financial documents.

 

Vanderbilt University Medical Center points to Epic rollout for 68% drop in operating income

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https://www.beckershospitalreview.com/finance/vanderbilt-university-medical-center-points-to-epic-rollout-for-68-drop-in-operating-income-082918.html

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Nashville, Tenn.-based Vanderbilt University Medical Center saw revenues increase in fiscal year 2018, but the hospital ended the period with lower operating income, according to recently released unaudited financial documents.

Here are five things to know about the hospital’s most recent financial results:

1. VUMC reported operating revenues of $4.1 billion in the 12 months ended June 30, up from $3.9 billion in the same period a year earlier. The hospital said the financial boost was largely attributable to higher net patient service revenue, which climbed 3.4 percent year over year.

2. VUMC’s operating expenses increased 8.3 percent year over year to $4 billion in fiscal year 2018. The hospital saw expenses across several categories rise, including a 7.2 percent year-over-year increase in expenses related to salaries, wages and benefits.

3. “The increase in salaries, wages and benefits is primarily due to increased staffing to meet additional demand associated with higher net patient service revenue, research contracts, along with training costs and post-live ramp up related to our EMR system implementation,” VUMC said. Higher consulting and management fees related to the Epic EMR implementation and an increase in subcontract expenses related to increased grant and contract revenue also caused the hospital’s expenses to rise.

4. VUMC ended fiscal year 2018 with operating income of $56.2 million, down 68.5 percent from $178.5 million in the same period a year earlier. The decline was largely attributable to the rollout of the new EMR system. VUMC said it had planned for future operating income reductions due to the implementation.

5. “We successfully completed our EMR implementation in November and we anticipate the new system will yield future efficiencies,” VUMC said. “However, in the year of implementation, increased operating expenses related to implementation caused a reduction in operating income. The EMR implementation put pressure on clinical volumes in the post-live period. Although we have achieved net patient services revenue in excess of our budget, the implementation has muted procedural volumes.”

 

Vanderbilt University Medical Center points to Epic rollout for 60% drop in operating income

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https://www.beckershospitalreview.com/finance/vanderbilt-university-medical-center-points-to-epic-rollout-for-60-drop-in-operating-income.html

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Nashville, Tenn.-based Vanderbilt University Medical Center saw revenues increase in the first nine months of fiscal year 2018, but the hospital ended the period with lower operating income.

Here are four things to know about the hospital’s most recent financial results.

1. VUMC reported revenues of $3.04 billion in the nine months ended March 31, up from revenues of $2.85 billion in the same period of the year prior, according to recently released bondholder documents. The hospital said the financial boost was primarily attributable to higher net patient service revenue, which climbed 5 percent year over year.

2. The hospital’s operating expenses increased 9 percent year over year to nearly $3 billion in the first nine months of the current fiscal year. The hospital’s expenses related to salaries, wages and benefits, as well as drug and supplies costs, increased year over year.

3. “The increase in salaries, wages and benefits is primarily due to increased staffing to meet additional demand associated with higher net patient service revenue, research contracts, and training costs for staff related to our EMR system implementation,” VUMC said. Higher consulting and management fees related to the Epic EMR implementation also caused the hospital’s expenses to rise.

4. VUMC ended the first nine months of fiscal year 2018 with operating income of $44.4 million, down 60 percent from $110 million in the same period a year earlier. The decline was largely attributable to higher expenses related to the rollout of the new EMR system. The hospital said it planned for future operating income reductions due to the implementation.

“We successfully completed our EMR implementation in November and we anticipate the new system will yield future efficiencies,” VUMC said. “However, in the year of implementation, increased operating expenses related to implementation caused a reduction in operating income. The EMR implementation put pressure on clinical volumes in the post-live period. Although we have achieved net patient services revenue in excess of our budget, the implementation has muted volumes.”

 

Allegheny Health Network grows operating income to $10.6M

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https://www.beckershospitalreview.com/finance/allegheny-health-network-grows-operating-income-to-10-6m.html

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Pittsburgh-based Allegheny Health Network saw its operating performance turn around in the third quarter of fiscal year 2017, fueled by higher patient volumes and efficiency.

The seven-hospital system reported operating income of $10.6 million in the third quarter ended Sept. 30, according to unaudited financial documents. This is a year-over-year improvement from the network’s $17.6 million operating loss in the third quarter of 2016.

Dan Laurent, Allegheny Health Network’s vice president of internal and external communications, told Becker’s Hospital Review the positive performance reflects increased physician office visits, more efficient operations, readmission reductions and favorable payer contracts, among other factors.

The health system recorded revenue of $771.3 million in the third quarter, up from $711.7 million in the same period a year prior.

At the same time, the health system saw expenses widen to $760.8 million, compared to $729.3 million during the third quarter of 2016. Mr. Laurent said the system’s third quarter financial performance reflected investments in expansion and renovations at Natrona Heights, Pa.-based Allegheny Valley Hospital, Saint Vincent Hospital in Erie, Pa., as well as an Epic EHR implementation at its Jefferson Hospital in Jefferson Hills, Pa.

Overall, the system recorded net income of $13.4 million in the third quarter of this year, up from a net loss of $16.3 million in the same period last year.

PeaceHealth’s operating performance improves as Epic EHR costs fall

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https://www.beckershospitalreview.com/finance/peacehealth-s-operating-performance-improves-as-epic-ehr-costs-fall.html

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Vancouver, Wash.-based PeaceHealth reported operating income before interest, taxes, depreciation and amortization of $229.4 million in fiscal year 2017, up 43.4 percent compared to $160 million the year prior.

The 10-hospital system attributed the improved results to a year-over-year $47.1 million decrease in nonrecurring costs associated with its implementation of Epic’s EHR software. PeaceHealth’s acute and ambulatory facilities completed the CareConnect EHR project as of the fiscal year ended June 30, according to recent financial filings.

While PeaceHealth saw expenses rise to $2.4 billion in fiscal year 2017, up from $2.37 billion the year prior, revenues also increased. The nonprofit health system saw revenues grow to $2.5 billion in fiscal year 2017, up from $2.4 billion in fiscal year 2016. The increase reflected a year-over-year increase in patient service revenues and admissions.

PeaceHealth ended fiscal year 2017 with net income of $315.1 million compared to a net loss of $68.3 million the year prior.

Temple University Health’s $5.7M operating loss anchored by Epic installation

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https://www.beckershospitalreview.com/finance/temple-university-health-s-5-7m-operating-loss-anchored-by-epic-installation.html

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Philadelphia-based Temple University Health System reported an operating loss in the 12 months ended June 30, largely due to costs associated with the implementation of an Epic EHR system, according to recently released bondholder documents.

Temple University Health System reported revenues of $1.75 billion in fiscal year 2017, up from $1.64 billion in the year prior. Although the system reported revenue growth, rising expenses offset those gains.

The increase in expenses was largely attributable to higher than expected staffing costs related to the Epic EHR implementation. The health system spent $15.1 million on staffing needs related to the Epic go-live.

Temple University Health System Senior Vice President, Treasurer and CFO Robert Lux told The Inquirer the higher staffing costs were necessary, as it was vital “to give all the physicians and nurses all the right kind of elbow-to-elbow support they needed for there to be a smooth clinical implementation.”

The system ended the most recent fiscal year with an operating loss of $5.76 million, compared to an operating surplus of $4.36 million in the year prior.

Most Significant Epic, Cerner Health IT Achievements of 2017

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Epic EHR, Cerner EHR

 

Epic and Cerner continue to dominate the healthcare industry and this year the two health IT companies have made key additions to their portfolios.

Epic Systems and Cerner Corporation solidified their status as top dogs in the health IT industry in 2017.

Both health IT companies scored massive contracts this year, with Epic continuing to gain popularity among the private sector and Cerner expanding its presence in the public sphere.

Cerner and Epic have also found success expanding their health IT offerings into other areas of care management, including population health and revenue cycle management. The companies have proven their ability to stay ahead of the curve by continuing to add more products and technologies to their arsenal in keeping with developments in the industry.

Over midway through 2017, here are a few of the most significant achievements of the year by the biggest players in health IT:

Summa Health to cut 300 positions, scale back services in face of $60M operating loss

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http://www.healthcaredive.com/news/summa-health-to-cut-300-positions-scale-back-services-in-face-of-60m-oper/445874/

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Dive Brief:

  • Facing steep operating losses, Summa Health will shed 300 positions and rein in its services, Cleveland.com reported. Half of the eliminated positions are currently empty.
  • The Akron-based health system recorded $30 million in profits in 2016, but expects $60 million in operating losses this year brought on by low inpatient and outpatient numbers.
  • “This year, inpatient and outpatient volumes are dramatically down and, as a result, we are facing staggering operating losses, interim President and CEO Cliff Deveny said in an internal memo to staff on Monday. “While we have considerable cash in reserve to protect us for the short term, this trend must stop immediately.”

Dive Insight:

Summa’s future has been uncertain since CEO Thomas Malone resigned in January. His departure followed a letter signed by 240 Summa physicians giving him a vote of no confidence and urging him to leave. The physicians complained of not being consulted on major changes that would affect patient care at Summa and questioned the nonprofit health system’s decision to sever a contract with emergency physicians.

As patient care shifts from inpatient to outpatient/virtual settings and hospitals face reimbursement cuts, nonprofit and for-profit hospitals alike are struggling to keep operating losses under control. In March, for example, Cleveland Clinic reported a 71% drop in operating income from $480.2 million in 2015 to $139.9 million last year — despite a 12% jump in revenues to $8 billion. Among expenses weighing the system down were pharmaceuticals (up 23%), labor (up 19%) and supplies (up 13%).

More than half of hospitals in the U.S. suffered operating losses in 2016, Cleveland Clinic CEO Toby Cosgrove said earlier this year during a panel to discuss changing demands on healthcare systems. While healthcare reforms are forcing hospitals to transform care delivery, they aren’t being funded adequately to do so, he said.

NYC Health + Hospitals suffered a $76 million operating loss in the first half of fiscal 2017, softened slightly by about $78 million in capital contributions from the city. The health system blamed the loss in part on timing of government payments and the need to count costs like depreciation. The health system has experienced several years of operating losses and had hoped to flip their luck with implementation of a $764 million Epic EHR. However, implementation fell far behind H+H’s original spring 2016 systemwide go-live deadline.

And Boston-based Partners HealthCare suffered $108 million in operating losses for fiscal 2016. The health system has struggled financially since purchasing Neighborhood Health Plan, Medicaid managed care subsidiary in 2012. Partners was hit with a nursing strike and expenses related to implementation of a new EHR system.

Denver Health CEO resigns amid major health system initiatives, physician exodus

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http://www.beckershospitalreview.com/hospital-executive-moves/denver-health-ceo-resigns-amid-major-health-system-initiatives-physician-exodus.html

Denver Health

Execs fired as cost of Epic EHR rollout grows at NYC Health and Hospitals

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http://www.beckershospitalreview.com/healthcare-information-technology/execs-fired-as-cost-of-epic-ehr-rollout-grows-at-nyc-health-and-hospitals.html

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