Hospital Corporation of America, based in Nashville, Tenn., reported profit of $540 million for the first quarter of fiscal year 2012 — more than double the $240 million from the first quarter of 2011 thanks to a previously announced settlement with CMS and increased patient volumes.
Last month, HHS and CMS agreed to a settlement with HCA and several other hospitals that were underpaid from the Medicare inpatient prospective payment system and the Balanced Budget Act of 1997's rural floor wage index. This settlement added $271 million of Medicare revenue to HCA's first quarter earnings. However, CMS also issued new Supplemental Security Income ratios for Medicare Disproportionate Share Hospital payments, and this reduced HCA's revenue by roughly $83 million. The net effect from these adjustments increased HCA's total revenue by $188 million.
Total revenue in the quarter ended March 31, 2012, climbed 13.5 percent to $8.41 billion. HCA's adjusted EBITDA also reached $1.82 billion, a 14.7 percent increase from its 2011 first quarter EBITDA of $1.59 billion.
HCA currently operates eight more hospitals and 11 more ambulatory surgery centers than it did a year ago. It also reported same-facility operating statistics, and many admission figures were up across the board. Same-facility admissions were up 3.2 percent, equivalent admissions jumped 4.8 percent, inpatient surgeries rose 1.5 percent and outpatient surgeries increased 2.7 percent. HCA also recorded almost 1.6 million emergency room visits, a 5.3 percent jump from the first quarter of 2011.
Last month, HHS and CMS agreed to a settlement with HCA and several other hospitals that were underpaid from the Medicare inpatient prospective payment system and the Balanced Budget Act of 1997's rural floor wage index. This settlement added $271 million of Medicare revenue to HCA's first quarter earnings. However, CMS also issued new Supplemental Security Income ratios for Medicare Disproportionate Share Hospital payments, and this reduced HCA's revenue by roughly $83 million. The net effect from these adjustments increased HCA's total revenue by $188 million.
Total revenue in the quarter ended March 31, 2012, climbed 13.5 percent to $8.41 billion. HCA's adjusted EBITDA also reached $1.82 billion, a 14.7 percent increase from its 2011 first quarter EBITDA of $1.59 billion.
HCA currently operates eight more hospitals and 11 more ambulatory surgery centers than it did a year ago. It also reported same-facility operating statistics, and many admission figures were up across the board. Same-facility admissions were up 3.2 percent, equivalent admissions jumped 4.8 percent, inpatient surgeries rose 1.5 percent and outpatient surgeries increased 2.7 percent. HCA also recorded almost 1.6 million emergency room visits, a 5.3 percent jump from the first quarter of 2011.
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