For-profit provider firms see 2014 rev­enue gains

Modern Healthcare - - BY THE NUMBERS - By Michael San­dler

A rev­enue spike from hos­pi­tal ad­mis­sions buoyed HCA Hold­ings, which main­tained the top spot on Mod­ern Health­care’s list of the largest in­vestor-owned health­care providers in 2014. Al­most all the ranked com­pa­nies saw a surge in 2014 op­er­at­ing rev­enue over 2013. Nashville-based HCA, which op­er­ates 166 hos­pi­tals in 20 states, saw an 8% in­crease in op­er­at­ing rev­enue. The com­pany at­trib­uted that to its 3.1% in­crease in rev­enue per equiv­a­lent ad­mis­sion, as well as a 4% in­crease in over­all equiv­a­lent ad­mis­sions over the prior year. Equiv­a­lent ad­mis­sions is a gen­eral mea­sure of com­bined in­pa­tient and out­pa­tient vol­ume.

The hos­pi­tal com­pany saw in­creases in rev­enue from Medi­care and Med­i­caid. Medi­care rev­enue was up 5.1%, re­bound­ing from a 4.1% dip in 2013. Med­i­caid rev­enue con­tin­ued its up­ward trend, ris­ing 24.9% in 2014 af­ter a 1% in­crease in 2013.

HCA boosted its rev­enue even as its un­com­pen­sated-care costs rose. Pro­vi­sion for doubt­ful ac­counts shrank 17.9% in 2014, but char­ity care and unin­sured dis­counts both rose. HCA paid out 2.4% more in to­tal un­com­pen­sated care than in 2013, and 15.2% more than in 2012.

Also on the list, Nashville-based Am­surg Corp. saw its op­er­at­ing rev- enue sky­rocket 53.4%, the big­gest jump of all the ranked com­pa­nies. The am­bu­la­tory surgery provider, which op­er­ates more than 320 fa­cil­i­ties in 24 states, at­trib­uted the in­crease to the ac­qui­si­tion of Sheri­dan Health­care last July, form­ing a physi­cian ser­vices di­vi­sion. Am­surg said the ac­qui­si­tion brought $512 mil­lion in net rev­enue to the com­pany. Ac­qui­si­tions of surgery cen­ters and growth in same-cen­ter re­sults pro­vided the com­pany’s am­bu­la­tory surgery cen­ter di­vi­sion with a $52.7 mil­lion boost.

Not ev­ery com­pany on the list saw a rev­enue in­crease in 2014. Amedisys, a home health and hospice com­pany based in Ba­ton Rouge, La., saw its op­er­at­ing rev­enue decline 3.6%. The com­pany sold, closed or con­sol­i­dated 63 home health units and hospices, and agreed to a $150 mil­lion set­tle­ment with the Jus­tice Depart­ment last April to set­tle a claim that it falsely billed Medi­care and that it en­tered into im­proper fi­nan­cial re­la­tion­ships with re­fer­ring physi­cians.

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