The system owns Texas Health Presbyterian Hospital Dallas, which treated Thomas Eric Duncan during the course of his ultimately fatal Ebola infection. Two of its nurses have contracted the virus and the hospital has come under fire about whether it properly followed infection control protocols.
In a statement to bondholders, Texas Health noted that its average daily census at Presbyterian (PDF) during the first three weeks of October declined 21.1% compared with the first nine months of the year. Visits to the emergency department also declined 53.3%, in large part because the ED was placed on diversion for Oct. 12-20.
The hospital has apologized for initially failing to recognize (PDF) that Duncan had Ebola and discharging him from its emergency department.
In October, some physicians transferred patients to other facilities, and its operating rooms saw 25% fewer surgeries during the three-week period compared with the average volume in the first nine months of 2014.
The volume decline did not affect the system's other 13 campuses.
Texas Health noted that net revenue declined $8.1 million or 25.6% at Presbyterian Hospital Dallas in October. Moody's Investors Service has already revised the system's rating outlook from positive to developing, citing the potential for decreased volume, reputational damage and potential lawsuits.
In its filing, the Arlington-based system said it believes it has sufficient funds to cover any legal liabilities that exceed its insurance coverage—though it said no lawsuits have been filed so far.
It reports holding $232 million in a money market fund and $150 million in two undrawn-upon lines of credit.
Systemwide, discharges increased about 1% in the first nine months of the year compared with the same period in 2013. Outpatient visits were up 12.6% and emergency room visits increased 2.7%. Surgeries, however, decreased 2.3%.
Texas Health also booked $28.2 million in non-operating losses in the third quarter, compared to a non-operating gain of $148.6 million in the year-ago period, to further depress its net surplus.
Although the year-to-date gains on its investments are below what they were at this point last year, Texas Health said it expects to record about $130 million from the sale of MedSynergies, a physician-practice-management company, to Optum. Texas Health, which will record the gain when the deal closes, was an investor in MedSynergies and will remain a client.
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