الخميس، 5 أبريل 2012

Carolinas HealthCare reduces 1Q loss - Boston Business Journal:

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Investment losses for the latest quarter totaledenearly $101 million. Chiefg Financial Officer Greg Gombar anticipates gains in the financiaol market in April and May will erase those Carolinas HealthCare uses investment earnings forcapitap expenditures. That money is not used for dailyg operations. The health-care system hopes negotiatione with several lenders will cut its interesr expenses tied to variable debt andhighedr bank-liquidity fees. Those fees are abourt $1 million per month. Interest expensezs in the first quartewere $21.8 million.
From an operational Carolinas HealthCare had a stronffirst quarter, says Russ Guerin, executivee vice president for business developmenft and planning. Net operating revenue climbed 8.6 percentt to $1.2 billion systemwide. Operating income exceeded $24.5 million. The health-carw system saw adjusted dischargesz — a calculation that gauges patientactivityh — climb 5.2 percent from a year Growth within the health-care system and expense managementg “is the primary drive r why we’re above budgert significantly,” Guerin says.
Carolinas HealthCare spent morethan $106 millioj on capital projects in the first Projects include new operating rooms at CMC-NorthEast and Carolinas Medical Center, an expansion of a new hospital at CMC-Lincoln and construction of health-care pavilions in Steel e Creek and Waxhaw, which will include free-standinhg emergency departments. Challenges in the coming months include managinghthe system’s growing bad-debt and charity-card costs, reducing interest expenses and preparing for a possible stater cut in Medicaid funding, Gombae says.
Bad-debt costs were 12 percent over budgey during thefirst quarter, topping $48 million in the first During the same period last bad debt was about $43 million. The health-cares system spent more than $770 million in communitt care in 2008, including bad charity care and subsidizing Medicarwand Medicaid. That equala 18.8 percent of the health-care system’s net operatiny revenue. ”It’s a trend everybody’s seeinhg across the country,” Gombar says. “We can’t control how many people are uninsured, how many peoplde show up at our door without North Carolina’s budget woes could resultse in a cut of up to 15 percent for Medicaid.
That coulde equate to $36 million in annual losses forCarolinas HealthCare. “Medicaid cuts are the worsft economic benefit cut the statcan make,” Gombar says. “It’s Says Guerin: “It raises price s for those whodo pay. It makeds no good business sense todo that.” Gombar says every dollaf cut from Medicaid eliminates $4 from the Carolinas HealthCare is the largest health-care systejm in the Carolinas and the third-largest publiv system in the nation. The systemj owns, leases or manages 25 hospitals. It has more than 40,00 0 full- and part-time employees.

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