Here are five more things to know:
1. HCA reported $1.63 billion in third-quarter operating income, down 4.1 percent from the previous year.
2. In April, HCA went from a 50% to 90% owner of Valesco — a move which reduced HCA’s consolidated margins by roughly 80 basis points in the quarter, CFO Bill Rutherford said in the call.
3. Valesco is a joint venture with EmCare, a physician practice management firm affiliated with Envision Healthcare, which recently filed for bankruptcy.
4. The deal had a negative impact of about $100 million on HCA’s adjusted earnings before interest, taxes and depreciation in the quarter, Mr. Rutherford said.
5. “Going forward, we anticipate the loss from this venture to approximate $50 million a quarter,” Mr. Rutherford said. “We are working diligently on multiple efforts to address these results, including making programming adjustments where necessary, deploying efforts to reduce the cost structure, and working with payers for more appropriate reimbursement.”
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.