Kaiser’s net income dips 23% in first 9 months of 2018

https://www.beckershospitalreview.com/finance/kaiser-s-net-income-dips-23-in-first-9-months-of-2018.html

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Oakland, Calif.-based Kaiser Permanente reported higher revenue for its nonprofit hospital and health plan units in the first nine months of this year, but the system ended the period with lower net income.

Here are four things to know:

1. Kaiser’s operating revenue climbed to $59.7 billion in the first nine months of 2018, according to recently released bondholder documents. That’s up 9.6 percent from revenue of $54.5 billion in the same period of 2017.

2. Kaiser’s health plan membership increased from 11.8 million members in December 2017 to 12.2 million members as of Sept. 30, 2018.

3. During the first nine months of this year, Kaiser’s operating expenses totaled $57.7 billion. That’s up from $52.2 billion in the first nine months of 2017. In the third quarter of 2018 alone, Kaiser’s expenditures included capital spending of $760 million, which includes investments in upgrading and opening new facilities, as well as in technology.

4. Kaiser ended the first nine months of 2018 with net income of $2.9 billion, down 23 percent from net income of $3.8 billion in the same period of 2017.

 

Allina’s operating income sinks 45% in Q2

https://www.beckershospitalreview.com/finance/allina-s-operating-income-sinks-45-in-q2.html

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Allina Health’s revenues increased in the second quarter of 2018, but the Minneapolis-based system’s operating income plummeted due to growth in expenses.

Allina reported revenues of $1.07 billion in the second quarter of this year, up from $1.01 billion in the same period of 2017, according to recently released bondholder documents. The boost was attributable to higher net patient service revenue, which climbed 6.4 percent year over year.

The system’s operating expenses totaled $1.06 billion in the second quarter of 2018, up from $990.4 million in the same period a year earlier.

Allina ended the second quarter of this year with operating income of $13.1 million. That’s down 45 percent from the first quarter of 2017, when the system reported operating income of $23.9 million.

Allina reported an investment return of $33.8 million in the second quarter of 2017, but that number dropped to $6.3 million in the second quarter of this year.

After factoring in the drop in investment income, Allina’s net income tumbled 56 percent year over year to $19.1 million in the second quarter of 2018.

 

 

Kaiser’s net income dips 35% to $653M

https://www.beckershospitalreview.com/finance/kaiser-s-net-income-dips-35-to-653m.html

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Oakland, Calif.-based Kaiser Permanente reported higher revenue for its nonprofit hospital and health plan units in the second quarter of 2018, but the system ended the period with lower net income.

Kaiser’s operating revenue climbed to $19.6 billion in the second quarter of this year. That’s up 8 percent from revenue of $18.1 billion in the same period of 2017.

The boost was attributable, in part, to the system’s health plan unit. In the first half of 2018, Kaiser added 453,000 health plan members. As of June 30, Kaiser had 12.2 million members.

Kaiser’s expenditures in the second quarter of 2018 included capital spending of $735 million, which includes investments in upgrading and opening new facilities, as well as in technology. In the second quarter of this year, Kaiser opened five new medical offices in California, bringing the system’s total number of medical offices nationwide to 689.

Kaiser reported operating income of $345 million in the second quarter of this year, down 55 percent from $772 million in the same period of 2017.

After factoring in nonoperating income, Kaiser ended the second quarter of 2018 with net income of $653 million, down 35 percent from net income of $1 billion in the same period of the year prior.

 

 

 

Anthem reports flat operating revenues due to exit from Affordable Care Act market

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Net income increased 30 percent driven by premium rate increases, the return of the health insurance tax and the acquisition of MA plans.

Anthem reported a 30 percent increase in net income for the first quarter compared to the same three months of 2017, but operating revenues remained relatively flat primarily due to the insurer’s planned exits from the Affordable Care Act marketplace.

On Wednesday, Anthem reported net income for the first quarter of $1.3 billion, versus 1 billion for the first three months in 2017.

First quarter operating revenues were relatively flat at $22.3 billion year-over-year due to a decrease in its individual market business.

In 2017, Anthem announced it would cut back its ACA footprint by about 70 percent.

Revenues were helped by premium rate increases to cover overall cost trends, the return of the health insurance tax and the acquisitions of HealthSun and America’s 1st Choice.

Anthem’s acquisition of HealthSun, completed at the end of 2017, added a Medicare Advantage health plan and delivery network in Florida.

The acquisition of America’s 1st Choice was finalized in February. The privately-held, for-profit Medicare Advantage organization  offers HMO products, including chronic special needs plans and dual-eligible special needs plans under its Freedom Health and Optimum brands in Florida. The deal added 135,000 Medicare Advantage members and included a 5 star plan.

Anthem’s medical enrollment totaled approximately 39.6 million members as of March 31, a decrease of 1 million or 2.5 percent percent, from 40.6 million at March 31, 2017.

The company said it now expects medical enrollment to be between 40.1 – 40.3 million for the full year 2018.

Counteracting the individual market decline, Anthem’s government business grew 10 percent year-over-year through a focus on serving the complex social and medical requirements of the dual special needs population.

Medical enrollment declined by 616,000 during the first quarter reflecting a decrease in the individual and local group fully-insured businesses. Medicare grew by 237,000 members and Medicaid enrollment declined by 120,000 individuals.

“We are pleased with our first quarter 2018 financial performance, which reflects our commitment to strong medical cost performance by effectively leveraging community based innovative and integrated clinical and value based care models across our markets,” said CEO and President Gail Boudreaux. “Throughout 2018, we are prioritizing investments to create a more flexible infrastructure that can quickly respond to the evolving needs of our customers and the changing healthcare environment.”

 

Trinity Health’s operating income nearly doubles in most recent quarter

https://www.beckershospitalreview.com/finance/trinity-health-s-operating-income-nearly-doubles-in-most-recent-quarter.html

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Livonia, Mich.-based Trinity Health ended the first quarter of fiscal year 2018 with operating income of $80 million, nearly double the operating income of $43.3 million the 93-hospital health system recorded in the same period of the year prior, according to recently released bondholder documents.

Trinity Health said revenues increased 2.9 percent year over year to $4.4 billion in the first quarter of fiscal year 2018. The revenue growth was largely attributable to higher patient volumes and payment rates. Trinity Health said patient volume increased year over year in 11 of its 20 regional markets.

After factoring in expenses, which increased 2.1 percent year over year, as well as losses on interest rate swaps and lower investment income, Trinity ended the first quarter of fiscal year 2018 with net income of $399 million. That’s compared to the first quarter of fiscal year 2017, when the health system posted net income of $467.5 million.

 

Advocate Health Care’s net income falls 27%

https://www.beckershospitalreview.com/finance/advocate-health-care-s-net-income-falls-27.html

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Downers Grove, Ill.-based Advocate Health Care saw net income fall as expenses climbed in the third quarter of fiscal year 2017.

The nonprofit health system reported net income of $169.6 million in the third quarter ended Sept. 30, according to unaudited financial documents. That is down 26.8 percent compared to $231.8 million in the third quarter of 2016. Advocate Health Care attributed the decrease to lower return on investment in the most recent quarter compared to the same period last year.

At the same time, the system reported a 13.8 percent increase in expenses. Advocate Health Care recorded expenses of $1.5 billion in the third quarter of 2017, up from $1.3 billion reported in the same quarter of 2016. The uptick in expenses reflected inflation increases and labor costs, with Advocate Health Care posting a one-time expense of $10 million for employees accepting early retirement plans.

Advocate Health Care also saw revenue increase 13.8 percent to $1.6 billion in the third quarter of this year compared to the same period in 2016. When excluding the elimination of revenue under contracts with the system’s physician arm, Advocate Physician Partners, total revenue reflected higher admissions and medical group visits, among other factors.

Advocate Health Care ended the third quarter of 2017 with operating income of $56.2 million, up $7.2 million from the same period in 2016. The system attributed the change to higher inpatient volumes and payment rates. Advocate Health Care achieved the same operating margin for the third quarter of this year as the third quarter of 2016: 3.6 percent.

CHS reports $110M net loss, completes 30-hospital divestiture spree

https://www.beckershospitalreview.com/finance/chs-reports-110m-net-loss-completes-30-hospital-divestiture-spree.html

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Community Health Systems, a 127-hospital chain based in Franklin, Tenn., posted a net loss of $110 million in the third quarter of 2017, compared to a net loss of $79 million in the same period of the year prior.

CHS said revenues dipped to $3.67 billion in the third quarter of this year, down from $4.38 billion in the same period of 2016. The decrease in revenue was attributable, in part, to lower patient volume. On a same-facility basis, admissions were down 14.8 percent in the third quarter of this year. When adjusted for outpatient activity, admissions decreased 15.5 percent year over year.

The company’s financials also took a $40 million hit from hurricanes Harvey and Irma in the three months ended Sept. 30. CHS said the hurricanes caused it to incur additional expenses and miss out on revenues.

Although CHS’ operating expenses declined in the third quarter, one-time charges took a toll on the company’s bottom line. CHS said its third quarter financial results included $33 million in impairment charges and losses related to the sale of some of its hospitals.

To improve its finances and reduce its heavy debt load, CHS put a turnaround plan into place in 2016. As part of the initiative, the company announced plans this year to sell off 30 hospitals. With the sale this week of Highlands Regional Medical Center in Sebring, Fla., and Merit Health Northwest Mississippi in Clarksdale, CHS Chairman and CEO Wayne T. Smith said Wednesday the 30 hospital divestitures are complete.

“Looking forward, we remain focused on strategic initiatives that we believe will yield positive results in the future,” said Mr. Smith. “Our goal is to emerge from this process with a sustainable group of hospitals that are positioned for long-term success and growth.”

CHS brought down its long-term debt load to $13.9 billion in the third quarter of this year, from $14.8 billion in the same period of 2016.