Vanguard Health Systems, Nashville, said uncompensated care increased significantly in the quarter ended Dec. 31, 2009, and the trend continued in January.
Vanguard notes effect of uncompensated care
Vanguard said uncompensated care rose to 12.8% of net revenue in its fiscal 2010 second quarter, compared with 11% in 2009's second quarter. The 2010 figures were adjusted to account for the introduction of uninsured discount programs in three markets—as of April 1, 2009, in Illinois and as of July 1, 2009, in Arizona and Texas. “I think time and circumstances have caught up with us, and we're experiencing what everybody else in the industry is experiencing,” said Charlie Martin, chairman and CEO, during a conference call.
Martin also said that Vanguard's recent $300 million payout to its owners, led by the Blackstone Group, does not impair its ability to make acquisitions, including, perhaps, in new markets.
Vanguard reported a net loss of $20.7 million for the quarter, compared with net income of $10.1 million a year ago, thanks to a $43.1 million charge to write down the value of its two Illinois hospitals. Revenue increased 6.4% to $843.6 million, on growth in patient volume and enrollment in its Arizona Medicaid health plan.
What do you think? Post a comment on this article and share your opinion with other readers. Submit your comments to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.