Inova’s in­sur­ance joint ven­ture ex­its Va. ex­change as earn­ings re­bound

Modern Healthcare - - REGIONAL NEWS - —Dave Barkholz

Inova’s joint-ven­ture health plan with Aetna is ex­it­ing the Vir­ginia ex­change mar­ket­place in 2018 to stem losses that are damp­en­ing an oth­er­wise strong re­bound at the sys­tem.

As health in­sur­ance gi­ant Aetna an­nounced it would leave all Af­ford­able Care Act ex­changes in 2018, its joint ven­ture with Inova—In­no­va­tion Health—is do­ing the same, ac­cord­ing to Inova Chief Fi­nan­cial Of­fi­cer Richard Ma­gen­heimer.

Ma­gen­heimer de­clined to re­veal In­no­va­tion Health’s losses in the four years it of­fered in­sur­ance on the Vir­ginia ex­change. He sim­ply said “it was not a good fi­nan­cial ex­pe­ri­ence.”

In­no­va­tion Health cov­ers about 200,000 peo­ple ei­ther with com­mer­cial health in­sur­ance or as a third-party ad­min­is­tra­tor to self-in­sured em­ploy­ers.

De­spite the ex­change losses, Falls Church, Va.-based Inova had a come­back quar­ter.

Ma­gen­heimer said vol­umes at its new Women’s and Chil­dren’s Hos­pi­tal on the main Fair­fax, Va., cam­pus helped boost first-quar­ter earn­ings, as did an in­crease in fee-for-ser­vice pa­tients.

Inova saw a 4% in­crease in hos­pi­tal ad­mis­sions, a 4% in­crease in emer­gency ad­mis­sions, a 5% in­crease in in-pa­tient surg­eries and a 6% gain in out­pa­tient surg­eries across its five hos­pi­tals in North­ern Vir­ginia.

Ad­mis­sion growth was strong­est at Fair­fax, where they in­creased to 12,404 in the quar­ter from 11,707 in the year­ago pe­riod.

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