HCA Holdings, the largest for-profit hospital chain in the U.S., forecast that revenue increased to $9.2 billion for the third quarter from $8.5 billion in the same quarter in 2013.
Income before taxes is forecast to hit $929 million in the quarter that ended Sept. 30 compared with $701 million in the same period last year, the Nashville-based company said in preview of financial results Wednesday.
HCA also revealed that it's recording roughly $94 million in Medicare revenue as an estimated settlement amount for claims previously denied by recovery audit contractors working for the CMS. The CMS has been offering providers with backlogged claim appeals, a settlement offer of roughly 68% of their claim amounts, which apparently HCA plans to accept.
The company also is taking a $68 million reduction in Medicaid revenues related to the Texas Medicaid Waiver Program, it said. The CMS has notified the Texas Health and Human Services Commission it is withholding the federal portion of some Medicaid payments while it investigates some local government/hospital affiliations it thinks may be inconsistent with the waiver, HCA reported.
HCA saw same-facility admissions rise 2.8% in the third quarter compared with the third quarter of 2013. Same-facility equivalent admissions—a number adjusted to reflect outpatient activity, rose 4.1%. Same-facility revenue per equivalent admission was up 3.5%.
Those numbers compare with second-quarter results that showed same-hospital admissions rise 1.2%, or 2.2% when adjusted for outpatient activity.
Follow John N. Frank on Twitter: @MHJFrank
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