Economic troubles in the oil patch exacerbated by bad debt contributed to a fiscal first-quarter operating loss and a slight decline in revenue at Integris Health in Oklahoma City.
The system, whose flagship is Integris Baptist Medical Center, posted an operating loss of $2.5 million in the quarter ended Sept. 30, compared with an operating gain of $3.6 million in the year-earlier period, according to financial statements. Revenue slipped to $379.7 million from $381.2 million.
In a note in the financial statement, management said hospital discharges and observations declined 2.5% in the quarter and bad debt increased compared with the same quarter last year.
Management attributed the rising bad debt to high-deductible insurance plans and the failure of Oklahoma to expand its Medicaid rolls under the Affordable Care Act. Across the country, 31 other states and the District of Columbia have expanded Medicaid.
Beyond policy decisions, the state has been hit hard by a downturn in oil and gas production over the past year as the price of benchmark crude has fallen below $50 a barrel.
“Leadership believes regional economic conditions (oil and gas sectors specifically) continued to impact our various markets, particularly those in rural areas, and expect this challenge to carry forward to future periods,” management wrote in its discussion of operating performance.
Integris also has seen “some slowdown” from the rollout of the Epic electronic health record system among its hospitals and physicians, the financial report shows.
Phone calls Tuesday to Integris were not immediately returned Tuesday.
Last month Daniel Davis became Integris' new chief financial officer after serving 17 years with HCA-affiliated hospitals, most recently as CFO at crosstown rival, Oklahoma University Medical Center.
Davis is the permanent replacement for David Hadley, who was unable to return from an undisclosed injury earlier this year.
Integris announced that Davis was joining Integris just days before Oklahoma University Medical Center announced that HCA was being bought out of its lease of the three-hospital system for $750 million to make way for a joint operating agreement with St. Louis-based SSM Health.
SSM will operate Oklahoma University Medical Center and integrate it with its physicians and three hospitals in Oklahoma City anchored by St. Anthony Hospital.
