Healthcare reform is producing positive financial benefits for publicly traded hospitals, if early Q2 earnings releases are any indication of what to expect from other systems when they report quarterly earnings.
Life-Point Hospitals on Friday reported a 44.3% increase in income from continuing operations for the second quarter and raised its financial projections for the full year. The publicly traded chain attributed the results to volume growth, expense management, new acquisitions and a better-than-expected benefit from healthcare reform. Universal Health Services, which also held an earnings call Friday, similarly attributed an earnings improvement in its acutecare business to healthcare reform. Life-Point reported second-quarter income of $39.1 million on revenue of $1 billion compared with $27.1 million on revenue of $894.9 million in the year-ago period.
The IRS late Thursday released drafts of the forms that employers will have to file to show compliance with the Patient Protection and Affordable Care Act requirement that they provide health insurance to workers.
The employer mandate has been politically controversial, so the form’s release sparked criticism because it demonstrates the administration is moving ahead despite objections. “It’s disappointing that President Obama is ignoring bipartisan opposition and pushing ahead with his employer mandate even though it will lead to fewer jobs and lower wages for the American people,” said Rep. Steve Daines (R-Mont.).
Patty Fontneau, CEO of Connect for Health Colorado, will leave her position at the state’s health insurance exchange in mid-August to become president of Cigna Corp.’s private exchange business.
She will help the insurer expand its business in other insurance marketplaces across the country, according to a news release. Bloomfield, Conn.based Cigna is one of 10 carriers that offers individual health plans on the Colorado marketplace. Connect for Health Colorado expects to name an interim CEO by next week.