Community Health Systems, Franklin, Tenn., said the U.S. Justice Department is alleging that three Community Health hospitals in New Mexico submitted claims that caused the state's program for reimbursing hospitals for indigent patients to file false claims with the federal government. Federal officials made the assertion in an Oct. 4 letter, said Wayne Smith, chairman, president and chief executive officer of the company. The letter provided an update on a civil investigation that Community Health first learned about in February 2006 and which involves hospitals in Arkansas and South Carolina, securities filings show. Community Healths actions were legal and the company will vigorously defend itself in court if necessary, Smith said.
Community Health also reported its third-quarter earnings, the first results since it completed its $6.97 billion acquisition of Triad Hospitals on July 25. Triads results are included as of that date for the third quarter, but were not added retrospectively to the 2006 results. Community Health reported net income of $10.5 million on revenue of $2.35 billion, compared with net income of $8.2 million on revenue of $1.12 billion in the year-ago quarter. For the nine months ended Sept. 30, net income was $118.5 million on revenue of $4.79 billion, compared with net income of $114.6 million on revenue of $3.19 billion in the year-ago period.
For hospitals operated by Community or Triad in both quarters, admissions declined 3%, although much of that decline is explained by service or hospital closures and fewer uninsured admissions, the company said. Adjusted admissions for the combined set of facilities declined 0.6%. Community owns or operates 128 domestic hospitals in 28 states and one hospital in Dublin, Ireland. Three hospitals, including the Dublin hospital, are held for sale. -- by Vince Galloro
What do you think? Post a comment on this article and share your opinion with other readers. Submit your letter to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.