Iasis Healthcare, Franklin, Tenn., said that volume gains fueled better operating earnings for the quarter ended Dec. 31, 2009, but its CEO warned that hospitals should expect the Medicare cuts that its lobbying groups agreed to even though reform looks dead.
Iasis reports higher volume, net income
The agreement between the Obama administration and the hospital industry—represented by the American Hospital Association and the Federation of American Hospitals—was to exchange $155 billion in Medicare cuts in return for covering more individuals through a comprehensive reform. “My guess is that they're going to go ahead and implement their cuts that supposedly the healthcare industry agreed to,” said David White, chairman and CEO of Iasis. “That's my take on it, quite frankly. I think there's blood in the water.” White said that he expects the company to be aggressive on the acquisition front.
Iasis said its net income rose nearly 50%, to $17.4 million, comparing its fiscal 2010 first quarter with the year-ago quarter. Revenue increased 12% thanks to a 25.2% increase in revenue from its Arizona Medicaid plan, Iasis said. Comparing the quarters, admissions increased 4.6% and adjusted admissions increased 3.3%. The overall patient mix deteriorated, however, with higher self-pay and Medicaid admissions, the company said.
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