Profit at Franklin, Tenn.-based Community Health Systems in the first quarter jumped 23 percent — from $61.3 million in 2011 to $75.5 million this year — thanks in part to higher admissions and $102 million of net operating revenue from the industry-wide settlement with HHS.
Earlier this month, HHS and CMS agreed to a settlement with roughly 2,200 hospitals, worth a cumulative $3 billion, that were underpaid from the Medicare inpatient prospective payment system from 1999 to 2011. The underpayments resulted from miscalculations related to the 1997 rural floor budget neutrality adjustments, and CHS' cut of the settlement was roughly $102 million of net operating revenue and $9 million of other related expenses.
In addition to the increased profit, CHS' total revenue rose 11.6 percent, from $2.95 billion in 2011 to $3.3 billion in 2012. CHS' adjusted EBITDA currently stands at $535.5 million compared with $457 million in the first quarter of 2011.
Same-hospital adjusted admissions increased 2.5 percent, from 331,849 to 340,264. Consolidated adjusted admissions rose 8.1 percent year-over-year, as CHS owns and operates seven more hospitals now than it did a year ago.
During the first three months ended March 31, 2012, CHS also finalized three hospital acquisitions: Moses Taylor Hospital in Scranton, Pa., Mid-Valley Hospital in Peckville, Pa., and MetroSouth Medical Center in Blue Island, Ill.
Earlier this month, HHS and CMS agreed to a settlement with roughly 2,200 hospitals, worth a cumulative $3 billion, that were underpaid from the Medicare inpatient prospective payment system from 1999 to 2011. The underpayments resulted from miscalculations related to the 1997 rural floor budget neutrality adjustments, and CHS' cut of the settlement was roughly $102 million of net operating revenue and $9 million of other related expenses.
In addition to the increased profit, CHS' total revenue rose 11.6 percent, from $2.95 billion in 2011 to $3.3 billion in 2012. CHS' adjusted EBITDA currently stands at $535.5 million compared with $457 million in the first quarter of 2011.
Same-hospital adjusted admissions increased 2.5 percent, from 331,849 to 340,264. Consolidated adjusted admissions rose 8.1 percent year-over-year, as CHS owns and operates seven more hospitals now than it did a year ago.
During the first three months ended March 31, 2012, CHS also finalized three hospital acquisitions: Moses Taylor Hospital in Scranton, Pa., Mid-Valley Hospital in Peckville, Pa., and MetroSouth Medical Center in Blue Island, Ill.
More Articles on CHS:
48 Statistics on For-Profit Hospital Operator Executive Compensation
CHS CEO Wayne Smith's 2011 Pay Totaled $21.6M Based on 2010 Results
CHS Completes $850M Offer of 2015 Senior Notes