Iasis Healthcare reported total revenue gains for its most recent quarter as the company saw growth and efficiency in Health Choice, its health-plan business.
Premium and service revenues for Health Choice increased 27.9%, compared to the prior-year quarter, excluding $4.7 million in revenue associated with the federal health insurer fee. Total lives served across all managed-care lines rose to 374,300, a 73.9% increase from the prior-year quarter.
The company also said its medical-loss ratio associated with premium revenue across all health plans connected to Health Choice was reduced to 83.9%, compared to 85.6% during the prior-year quarter. The company said the reduction was the result of effective care management of newly enrolled childless adults in Arizona as of Jan. 1, 2014, when that state expanded its Medicaid program.
The Franklin, Tenn.-based company disclosed an 11% increase in total revenue in the second quarter of its fiscal 2015 over the same period last year. Iasis attributed the uptick to a 3.5% increase in acute-care revenue compared to the prior-year quarter. Admissions increased 1% and adjusted admissions increased 4.1% in the second quarter. The company also saw increased admissions over the first six months of fiscal 2015, which rose 2% over the same time period in 2014, to 51,682 admissions.
Iasis last month restated Health Choice-related financial statements for its previous three quarters, which reduced its revenue by almost $48 million for those quarters.
Additionally, the company reported $1.4 million in costs related to the pending initial public offering of its parent company, Iasis Healthcare Corp. The company said it hopes the IPO will raise $100 million to pay down debt and invest in capital projects.