Healthcare Business News

Denver system's revenue up, operating income down, and other news

By Beth Kutscher and Bob Herman
Posted: May 31, 2014 - 12:01 am ET

SCL Health System, which has pruned its portfolio of hospitals during the past year, reported an increase in 2013 revenue but lower operating income because of higher expenses.

In a financial filing for its fiscal 2013, ended Dec. 31 Denver-based SCL reported a surplus (which includes returns on financial assets), of $188.6 million on revenue of $2.3 billion. That represented an improvement from a surplus of $180.6 million on revenue of $2.2 billion the prior year.

However, operating income fell to $41.4 million in 2013 from $56.7 million the previous year as salaries, benefits and other expenses increased. Higher investment income offset the decline.

The Catholic system closed a deal in April 2013 to sell two of its Kansas hospitals to for-profit chain Prime Healthcare Services. Six months later, SCL entered into an agreement to transfer sponsorship of St. John's Health Center in Santa Monica, Calif., to Providence Health & Services in a $125 million deal.

The system saw an 8.7% increase in patient service revenue from Medicaid and a 12% increase in revenue from managed-care and commercial plans. Revenue from self-pay patients also increased 13.2%, and the system provided more charity care and recorded higher write-offs from bad debt. Admissions fell 4.2% year over year.

Follow Beth Kutscher on Twitter: @MHbkutscher

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Wash. system launches clinically integrated network

EvergreenHealth in Kirkland, Wash., has launched a new clinically integrated network with the goal of aligning independent and employed physicians in the region.

EvergreenHealth Partners includes 500 physicians across 80 practices, as well as physicians who work for EvergreenHealth. The network will focus on preventive care, patient coordination and improved quality, with a goal of publishing quality data in the near future. Physicians who participate also can receive financial incentives for attaining high-quality marks.

The network went live to self-insured organizations in January, including EvergreenHealth, and it is working to gain state approval to be available on commercially insured plans. No timeline was given for when this would occur.

Follow Bob Herman on Twitter: @MHbherman

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