Solid growth con­tin­ued in Q3 across in­sur­ers, providers

Modern Healthcare - - News - By Tara Ban­now and Shelby Liv­ingston

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.

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