Iasis Healthcare is making a year-end exit from the Arizona insurance exchanges but not before racking up another quarter of big losses on the business.
The Franklin, Tenn.-based hospital and managed-care company posted a net loss from continuing operations of $76.3 million in its fiscal fourth quarter ended Sept. 30, compared with a net loss from continuing operations of $3 million in the year-earlier period.
The 2016 fourth-quarter loss included a $54 million noncash charge to write off the goodwill, or excess book value, in an acute-care unit. Revenue in the quarter jumped 13.7% to $814.4 million from $716.6 million in the year-earlier period.
The company's Arizona health insurance exchange business contributed $10.8 million to the fourth-quarter operating loss, contributing the largest share of the company's losses in the fourth quarter. The exchange business had a $7.5 million deficiency reserve and $1.8 million in unfavorable risk adjustment transfer settlements.
For the full 2016 fiscal year, the exchange business was responsible for $19 million of the company's $117 million operating loss.
Much of the company's managed-care business is growing. Membership across its Medicaid and other managed-care products jumped 69% for the year to 677,900 covered lives.
The managed-care business for the year contributed $1.29 billion to the company's $3.25 billion in total revenue.