Healthcare Business News

Iasis reports net loss as expenses offset patient, health plan revenue

By Beth Kutscher
Posted: August 12, 2014 - 2:30 pm ET

Iasis Healthcare, the 16-hospital, private equity-backed chain, said Medicaid expansion has had a positive impact on its Arizona hospitals and Medicaid managed-care business.

Yet its operating expenses rose significantly in its fiscal third quarter, ended June 30, leading to a net loss for the group.

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In total, Iasis reported a $6.8 million net loss on revenue of $673.2 million compared with net income of $3.2 million on revenue of $599.1 million during the third quarter of 2013. Revenue increased at its acute-care hospitals as well as in its Health Choice managed-care organization.

Admissions in the quarter decreased 3.1%, but increased 1.9% when adjusted for outpatient activity. Net revenue per adjusted admission was up 1.3% year over year. At Health Choice, total lives enrolled in its health plans increased 14.5% compared with the year-ago period.

The Franklin, Tenn.-based chain also incurred $2 million in startup costs as it launches a new third-party administration and management services organization at Health Choice.

Follow Beth Kutscher on Twitter: @MHbkutscher

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