Baptist Memorial posts loss on weaker volume
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.