Presbyterian sees higher gain under Medicaid expansion
Presbyterian Healthcare Services, a New Mexico system with hospital and health plan operations, reported that the state’s revamped Medicaid program led to a larger surplus in its second quarter.
Albuquerque-based Presbyterian reported that its second-quarter operating margin improved to 6.9%, up from 4% during the same period in 2013. In total, the group reported a surplus of $84.6 million on revenue of $621.6 million compared with a surplus of $11 million on revenue of $533.6 million in the prior-year period.
Presbyterian is one of four health plans that were selected last year to manage medical, long-term care and behavioral health services for Medicaid beneficiaries under the state’s revamped Centennial Care program. The redesigned plan—which offers Medicaid services through managedcare organizations—went into effect Jan. 1 and also expanded Medicaid eligibility for low-income adults.
Premium revenue at Presbyterian increased 21.5% in the second quarter, as its at-risk health plan membership increased 6.5% year over year.
Although it saw a 1.5% decrease in members in its commercial business, Medicaid beneficiaries increased 10.1% and individual memberships increased 7.1%.
In its eight hospitals, inpatient discharges increased 2.9% year over year while outpatient visits were up 5.3%. Revenue from patient care increased 6.5% in the second quarter compared with the prior-year period.