Bap­tist Memo­rial posts loss on weaker vol­ume

Modern Healthcare - - REGIONAL NEWS - —Beth Kutscher

Bap­tist Memo­rial Health Care Corp., a 14-hos­pi­tal sys­tem in Mem­phis, Tenn., posted a big­ger-than-ex­pected net loss for the nine-month pe­riod ended June 30 as its pa­tient vol­ume and payer mix de­clined.

The sys­tem re­ported fi­nan­cial re­sults for the month of June as well as the first nine months of its fis­cal year, which ends Sept. 30.

Bap­tist had bud­geted for a 1% in­crease in dis­charges and a 3.3% in­crease in rev­enue per dis­charge for the first nine months of its fis­cal year. In­stead, it saw flat pa­tient vol­ume and a 0.4% de­crease in rev­enue per pa­tient. Its salary and ben­e­fit costs per dis­charge also in­creased 5.4%, in­stead of the 3.8% bud­geted.

As a re­sult, the sys­tem re­ported a $124.3 mil­lion op­er­at­ing loss for the nine months in­stead of the $20.7 mil­lion op­er­at­ing loss it had fore­cast. Af­ter adding gains from its in­vest­ments, Bap­tist’s net loss was $46.3 mil­lion on $1.4 bil­lion in rev­enue, com­pared with a sur­plus of $43.4 mil­lion on rev­enue of $1.4 bil­lion dur­ing the year-ago same pe­riod.

“Our bal­ance sheet con­tin­ues to be strong and we have a solid and sta­ble mar­ket share,” the sys­tem said in a writ­ten state­ment. “Our fi­nan­cial chal­lenges are on trend with what hos­pi­tals are ex­pe­ri­enc­ing na­tion­wide. High­d­e­ductible in­sur­ance plans have af­fected pa­tient vol­umes in our af­fil­i­ated hos­pi­tals and physi­cian prac­tices.”

Bap­tist said it is im­ple­ment­ing a sys­temwide EHR with an es­ti­mated cost of $200 mil­lion and is fund­ing sev­eral con­struc­tion projects.

Flat vol­ume con­trib­uted to a net loss at Bap­tist Memo­rial in Mem­phis.

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