Tag Archives: Health System

CHI’s operating loss swells to $153.9M in Q2

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http://www.beckershospitalreview.com/finance/chi-s-operating-loss-swells-to-153-9m-in-q2.html

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Catholic Health Initiatives, a nonprofit 103-hospital system based in Englewood, Colo., saw revenue increase in the second quarter of fiscal year 2017 but ended the period with an operating loss, according to recently released bondholder documents.

CHI said operating revenues climbed to $4.2 billion in the second quarter of FY 2017, up from $4 billion in the same period of the year prior. The increase was largely attributable to higher net patient service revenue, which grew 5.2 percent year over year to $4 billion in the second quarter of FY 2017. CHI said $93.4 million of net patient service revenue was due to recently completed acquisitions.

However, after factoring in a year-over-year increase in expenses, CHI ended the most recent quarter with an operating loss. CHI reported an operating loss of $153.9 million in the second quarter of fiscal year 2017, compared to an operating loss of $112.1 million in the same period of the year prior.

CHI said operating results declined in the second quarter of FY 2017 across several of its regions, including Nebraska, Texas, Kentucky, Arkansas, North Dakota, Minnesota and Iowa. The declining results in those regions were partially offset by improvements in the Ohio, Tennessee, Colorado and Pacific Northwest regions.

In a statement to Becker’s, a CHI spokesman said, “While financial results in the second quarter of the 2017 fiscal year demonstrated a favorable trend over the previous quarter, CHI continues its focus on a comprehensive performance-improvement and expense-reduction program, implementing a wide array of clinical and operational changes. The organization is confident that this disciplined, rigorous effort will yield further positive results in financial performance over the next six months of this fiscal year.”

In the first quarter of FY 2017, CHI reported an operating loss of $217.8 million, compared to an operating surplus of $7.8 million in the same period of the year prior.

Caring for High-Need, High-Cost Patients — An Urgent Priority

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http://www.nejm.org/doi/full/10.1056/NEJMp1608511?utm_source=TrendMD&utm_medium=cpc&utm_campaign=NEJM_TrendMD

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Improving the performance of America’s health system will require improving care for the patients who use it most: people with multiple chronic conditions that are often complicated by patients’ limited ability to care for themselves independently and by their complex social needs. Focusing on this population makes sense for humanitarian, demographic, and financial reasons.

From a humanitarian standpoint, high-need, high-cost (HNHC) patients deserve heightened attention both because they have major health care problems and because they are more likely than other patients to be affected by preventable health care quality and safety problems, given their frequent contact with the system. Demographically, the aging of our population ensures that HNHC patients, many of whom are older adults, will account for an increasing proportion of users of our health care system. And financially, the care of HNHC patients is costly. One frequently cited statistic is that they compose the 5% of our population that accounts for 50% of the country’s annual health care spending.

At least three steps are essential to meeting the needs of these patients: developing a deep understanding of this diverse population; identifying evidence-based programs that offer them higher-quality, integrated care at lower cost; and accelerating the adoption of these programs on a national level. Although we are making progress in each of these areas, much work remains.

 

Bankrupt North Philadelphia Health System to sell shuttered hospital

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http://www.beckershospitalreview.com/hospital-transactions-and-valuation/bankrupt-north-philadelphia-health-system-to-sell-shuttered-hospital.html

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North Philadelphia Health System, which filed for Chapter 11 bankruptcy Dec. 30, has inked a deal to sell St. Joseph’s Hospital in Philadelphia, which closed in March 2016, according to a motion filed in bankruptcy court Monday.

According to the sales contract attached to the motion, NPHS has agreed to sell the hospital to MMP Hospital Partners in Philadelphia for $8.12 million. NPHS filed the motion Monday to sell the hospital free and clear of liens.

The closing of the sale is conditioned on NPHS receiving approval from the bankruptcy court, and the system said the sale is slated to take place within two weeks of the entry of a court order approving the motion. A hearing on the motion is scheduled for March 22 at 11:00 a.m.

NPHS currently operates two facilities in Philadelphia: Girard Medical Center, a 168-bed psychiatric hospital, and Goldman Clinic, a substance abuse treatment center.

Lawyer sentenced to prison for stealing $1.2M in patient payments from St. Luke’s

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http://www.beckershospitalreview.com/legal-regulatory-issues/lawyer-sentenced-to-prison-for-stealing-1-2m-in-patient-payments-from-st-luke-s.html

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Alan B. Gallas, 65, was sentenced Friday to one year and one day in federal prison for stealing more than $1.2 million from Kansas City, Mo.-based St. Luke’s Health System between 2009 and July 2015, according to the Department of Justice.

Mr. Gallas’ firm, Gallas & Schultz, collected past-due payments from patients for the hospital network. Money collected by the firm on behalf of St. Luke’s was supposed to go into a trust account. However, Mr. Gallas admitted in April that he had employees put holds on more than $1.2 million in St. Luke’s collections and then transfer the funds to the law firm’s operating account.

Mr. Gallas’ law partner Mark J. Schultz, 57, pleaded guilty Friday to participating in the fraud conspiracy. He admitted to transferring funds from the trust account to the law firm’s operating account. The total amount of funds diverted by Mr. Schultz will be determined by the court at his sentencing hearing, according to the DOJ. He faces up to five years in federal prison for his role in the scheme.

In addition to his prison term, Mr. Gallas was ordered to pay more than $1.2 million in restitution.

21 recent hospital transactions and partnerships

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http://www.beckershospitalreview.com/hospital-transactions-and-valuation/21-recent-hospital-transactions-and-partnerships-21317.html

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The following healthcare mergers, acquisitions and general partnerships took place or were announced in the past week.

A state-by-state breakdown of hospital adjusted expenses per inpatient day

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http://www.beckershospitalreview.com/finance/a-state-by-state-breakdown-of-hospital-adjusted-expenses-per-inpatient-day.html

OR Efficiencies

Here are the adjusted expenses per inpatient day in 2015, organized by hospital ownership type, in all 50 states and the District of Columbia, according to the latest statistics from Kaiser State Health Facts.

These figures, which are based on information from the 2015 American Hospital Association Annual Survey, include all operating and nonoperating expenses for registered U.S. community hospitals, defined as public, nonfederal, short-term general and other hospitals. The figures are an estimate of the expenses incurred in a day of inpatient care and have been adjusted higher to reflect an estimate of the volume of outpatient services, according to the Kaiser Family Foundation.

United States

  • State/local government hospitals — $2,013
  • Nonprofit hospitals — $2,413
  • For-profit hospitals — $1,831

Kaiser Permanente operating income grows as membership booms

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http://www.beckershospitalreview.com/finance/kaiser-permanente-operating-income-grows-as-membership-booms.html

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Oakland, Calif.-based Kaiser Permanente saw revenue and operating income increase in 2016, according to recently released bondholder documents.

Kaiser said operating revenue for its nonprofit hospital and health plan unit climbed 6.4 percent year over year to $64.6 billion in 2016. After factoring in expenses, Kaiser ended 2016 with operating income of $1.9 billion, up from $1.8 billion in the year prior.

Kaiser reported a strong year in health plan membership growth. The system ended 2016 with 10.7 million members, an increase of 4.2 percent from the year prior. After completing its acquisition of Seattle-based health plan Group Health Cooperative Feb. 1, Kaiser’s health plan membership now tops 11 million.

In 2016, Kaiser’s capital spending increased to $2.8 billion, up slightly from $2.7 billion in 2015. The system opened a new technology campus in Atlanta and 12 new medical offices and two new dental offices last year.

Fueled by strong nonoperating income, Kaiser reported net income of $3.1 billion in 2016, up from $1.8 billion in 2015.

Aetna, UnitedHealth show increasing appetite for value-based care contracts

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http://www.healthcarefinancenews.com/news/aetna-unitedhealth-show-increasing-appetite-value-based-care-contracts?mkt_tok=eyJpIjoiWmpKaE5ETXhZVGc0TkdJNSIsInQiOiJjWXBGUGRYOWwySVVDRnRsdjhpOTJEK09yNSt1dzcyN1d0TmNucCtzN1A4cWlVcGl2NmM3M1wvR0lYQjRUa3ZQdzd2b2g4ZnFQWFRlYVhBMFwvY3I2VFlJaEVkdXhlODhNSGk4VUpVempaVUloZVBmRjRtekZXQ1ZGYVdjNFRJdkZRIn0%3D

Aetna has long held a goal to reach 75 to 80 percent of its medical spend in value-based relationships by 2020.

The biggest health insurers are moving quickly towards to value-based care arrangements, their recent earnings reports show.

While Aetna has long-held a goal to reach 75 to 80 percent of its medical spend in value-based relationships by 2020, Aetna’s medical spend is now 45 percent tied to value, CEO Mark Bertolini said during last week’s fourth quarter earnings call.

“One way we measure our success is by how well we are able to keep our members out of the hospital and in their homes and communities,” Bertolini said. “For example, in 2016, we reduced total acute admissions by approximately 4 percent, and we deployed predictive modeling to target members at the greatest risk of readmission.”

Aetna has achieved a 27 percent reduction in readmission rates using multidisciplinary care teams that engage facilities to develop effective discharge plans, he said.

“Collectively, these clinical programs have driven a best-in-class Stars readmission rate among national competitors,” he said.

Aetna sees more opportunities for reducing utilization over the long-term in readmission rates, and in a reduction in inpatient days. Unit price is still the driver in value-based purchasing, Bertolini said.

“I think value-based contracting is going to continue to be encouraged by even the current administration as a way of getting a handle on healthcare costs,” he said. “We have a healthy pipeline of opportunities. They will not all be joint ventures. I think there are other models emerging.”

UnitedHealthcare is increasingly helping states manage care for their complex, vulnerable and most costly populations, as well as assisting employers with programs to support the needs of retirees and employees with chronic conditions, according to CEO Stephen Hemsley in the insurer’s earnings report.

50 healthcare organizations dubbed best in supply chain by GHX

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http://www.healthcarefinancenews.com/news/50-healthcare-organizations-dubbed-best-supply-chain-ghx?mkt_tok=eyJpIjoiWmpKaE5ETXhZVGc0TkdJNSIsInQiOiJjWXBGUGRYOWwySVVDRnRsdjhpOTJEK09yNSt1dzcyN1d0TmNucCtzN1A4cWlVcGl2NmM3M1wvR0lYQjRUa3ZQdzd2b2g4ZnFQWFRlYVhBMFwvY3I2VFlJaEVkdXhlODhNSGk4VUpVempaVUloZVBmRjRtekZXQ1ZGYVdjNFRJdkZRIn0%3D

Systems recognized for their work in improving operational performance and driving down costs through automation.

Global Healthcare Exchange has announced its annual list of the healthcare provider organizations being recognized as the 2016 GHX “Best 50” Supply Chains in North America.

The supply chains are being recognized for their work in improving operational performance and driving down costs through automation. The recipients will be honored at the 17th annual Healthcare Supply Chain Summit from April 24-26 at the Gaylord National Resort in National Harbor, Maryland.

The list, alphabetically, is as follows:

Steven Brill breaks down how much top hospital CEOs make per patient stay

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http://www.healthcarefinancenews.com/news/steven-brill-breaks-down-how-much-top-hospital-ceos-make-patient-stay

Hospital CEOs netting even just a few dollars in earnings per patient day often haul in considerable salaries, lawyer and journalist Steven Brill claims in new research published in Axios on Tuesday.

To examine the relationship between patient days and executive salary, Brill merged American Hospital Directory data about hospital operations, including patient beds and total patient days,  with IRS information on what nonprofit hospitals pay their top brass.

The result is a list of the reported annual payouts to the CEOs of the 20 largest hospital systems, ranked by the number of hospitals in the system, divided by the annual number of patient days recorded at each hospital.

In other words, the research shows how much these CEOs got paid for each day a person spends in their hospital.

http://www.healthcarefinancenews.com/news/physician-leadership-compensation-outpaces-ceo-pay-survey-finds