Daughters of Charity stumbles on adverse payer mix, physician group losses
Daughters of Charity Health System, the Los Altos Hills, Calif.-based group still searching for a buyer after its sale to Prime Healthcare Services unraveled this year, continues to face a tenuous financial picture.
The six-hospital Northern California system warned bondholders in November that it may not be able to continue operating without running out of funds. Its latest third-quarter balance sheet, for the period ended March 31, showed that Daughters has 20 days of cash on hand, a decrease from the 32 days it had at the same point last year.
Its largest challenges—which contributed to a $55.3 million operating loss in the quarter—include an adverse payer mix, reimbursement rate increases that were below historical levels and losses in its physician network, the system said in its financial filing.
Daughters watched its $843 million sale to Prime fall apart in March after the Ontario, Calif.-based chain refused to accept the lengthy list of conditions imposed on the deal by California Attorney General Kamala Harris.