UnityPoint Health, a 12-hospital system based in West Des Moines, Iowa, reported an increase in operating surplus in 2013, in part attributable to higher reimbursement from Medicaid and its value-based contracts.
The not-for-profit group saw a 34.5% year-over-year increase in operating surplus during fiscal 2013, which ended Dec. 31. It reported $82.6 million in operating income on $2.8 billion in revenue, compared with $61.4 million on $2.7 billion in revenue during fiscal 2012.
Patient service revenue from Medicaid reimbursement was nearly 16% higher in 2013 than it was the prior year. The system pointed to a 2011 policy change in Iowa that levied an annual tax assessment on certain hospitals to fund Medicaid and obtain federal matching dollars. However, a portion of those funds were returned to hospitals in the form of higher Medicaid reimbursement that is now closer to the cost of providing care.
A similar policy exists in Illinois, where UnityPoint has two hospitals. Medicaid reimbursement from Illinois nearly doubled year over year.
UnityPoint also reported that it recognized $7.8 million in revenue from value-based contracts, a significant increase from only $2.3 million in 2012. Its value-based contracts include its Trinity Pioneer ACO, which began operating Jan. 1, 2012; a commercial accountable care organization in partnership with Wellmark Blue Cross and Blue Shield, which was formed April 1, 2012; and a Medicare shared-savings ACO, which was accepted into the program July 1, 2012.
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