Solid growth continued in Q3 across insurers, providers
Earnings season is in full swing and some of the industry’s heavy hitters beat analysts’ expectations. Here’s a look at a few Q3 numbers compared with Q3 2017.
Aetna | Hartford, Conn.
$15.5 billion Revenue, up 3.3%
19.3% Increase in year-over-year net income
1.8 million Medicare Advantage membership, up 19.3%
22.1 million Total membership, down from 22.2 million
TAKEAWAY Growth in Medicare Advantage membership fueled Aetna’s surge in revenue and net income. The insurer spent $18 million in transaction and integration costs during the third quarter and $95 million total in the last nine months related to its pending deal with CVS Health, which got conditional approval from the Justice Department last month.
Anthem | Indianapolis
$23.3 billion Revenue, up 3.7%
$960 million Net income, up 28.5%
692,000 Individual members served in Q3, down 59.2%
17.8% Hike in Medicare Advantage membership
TAKEAWAY Anthem continued its streak
of higher quarterly profits thanks largely to growth in Medicare Advantage membership. The insurer also raised premiums to cover medical costs and spent less money on claims.
Community Health Systems | Franklin, Tenn.
$3.45 billion Revenue, down 6%
$372 million EBITDA, up from $ 331 million
2.3% Decrease in same-facility admissions year over year
1.5% Decline in same-facility patient days
TAKEAWAY Community Health had 118 hospitals in this year’s third quarter compared with 133 during the same period last year. Viewed on a same-facility basis, net operating revenue rose 3.2% year over year.
HCA Healthcare | Nashville
$11.5 billion Revenue, UP 7.1%
78% Increase in year-over-year income
$2 billion EBITDA, up from $1.8 billion
3.1% Growth in same-facility admissions
$132 million Tax benefit from Tax Cuts and Jobs Act
TAKEAWAY Strong Q3 results easily beat analysts’ expectations for revenue growth and earnings. This was the 18th consecutive quarter in which HCA saw an increase in same-facility admissions.
WellCare Health Plans | Tampa, Fla.
$5.1 billion Revenue, up 14.9%
$130.6 million Net income, down 23.9%
3.9 million Medicaid membership, up 43.7%
544,000 Medicare membership, up 10.6%
1.1 million Part D membership, down 7.4%
TAKEAWAY Acquiring for-profit insurer
Meridian Health Plan helped bolster WellCare’s third-quarter performance. The deal, first announced in May, boosted WellCare’s Medicaid membership in Illinois and Michigan and gave it a foundation to build internal pharmacy management capabilities through Meridian’s in-house pharmacy benefit manager.