Many of our readers work in one of these hospitals so I wanted to share it with them.
The five major for-profit hospital operators have released their third quarter financial reports, and below are 15 things to know about their financial results and operating performance.
Community Health Systems (Franklin, Tenn.)
1. CHS reported $4.79 billion in operating revenues for the third quarter of this year, up from $3.17 billion in the third quarter of last year.
2. CHS’ profit for the three months ended Sept. 30 was $62 million, up from $4 million in the same period of 2013.
3. In its third-quarter financial report, CHS disclosed a settlement it reached with the Department of Justice to resolve allegations three CHS hospitals in New Mexico improperly submitted false claims to the state’s Medicaid program. A reserve of $75 million was recorded to settle the government’s claim. CHS also disclosed it paid $2 million in legal fees related to the False Claims Act settlement in the third quarter of this year.
Hospital Corporation of America (Nashville, Tenn.)
4. HCA posted revenues of $9.22 billion in the third quarter of this year, up from $8.46 billion in the third quarter of 2013.
5. HCA’s profit for the third quarter of this year was $518 million, a sizeable increase over the $365 million the hospital operator posted for the same quarter of last year.
6. HCA’s strong financial results are partially attributable to an increase of 4.1 percent in same facility equivalent admissions, with revenue per admission increasing 3.8 percent.
LifePoint Hospitals (Brentwood, Tenn.)
7. LifePoint reported $1.17 billion in revenues in the third quarter of 2014, up from $899.7 million in the third quarter of last year.
8. LifePoint’s profit for the third quarter of this year was $28.7 million, down from $34.3 million in the third quarter of 2013.
9. Based on its third quarter financial results, LifePoint estimated its net revenue for 2014 will be between $4.45 billion and $4.5 billion, and its estimated adjusted EBITDA will be between $630 million and $640 million.
Tenet Healthcare Corp. (Dallas)
10. Tenet recorded $4.18 billion in revenues for the third quarter of this year, up from $3.94 billion in the third quarter of last year.
11. Tenet’s profit for the third quarter of 2014 was $9 million, which is a significant decrease from the $28 million it posted in the third quarter of 2013.
12. In the third quarter of this year, Tenet’s pre-tax expenses increased by $95 million from the third quarter of last year.
Universal Health Services (King of Prussia, Pa.)
13. UHS reported $2.02 billion in revenue for the third quarter of 2014, up 11.1 percent from its revenue in the third quarter of last year.
14. UHS’ profit for the third quarter of this year was $82.8 million, down from $114.6 million in the third quarter of 2013.
15. Included in UHS’ reported financial results was a pre-tax charge of $44 million, which the hospital operator incurred in connection with a $65 million legal settlement. The settlement was related to a 2009 shareholder class-action lawsuit that was filed against Psychiatric Solutions — a UHA subsidiary — over allegedly misleading investors by failing to disclose information about violence at one of its psychiatric hospitals.