Becker's Hospital Review

20 CFO / FINANCE Texas church forgives $10.5M in medical debt By Ayla Ellison C ovenant Church in Carrollton, Texas, do- nated $100,000 to RIP Medical Debt, a charity that buys and forgives medical debt for needy patients, which was used to pay off $10.55 million in medical debt, according to NBC 5. With the help of RIP Medical Debt, which buys medical debt for pennies on the dollar, the church's donation will eliminate nearly 5,000 families' medical debt. The money will be used to help families in four Texas cities where Cove- nant has churches. RIP Medical Debt is the same organization come- dian John Oliver partnered with when he formed a debt collection business in 2016 and bought then forgave nearly $15 million in medical debt. Earlier in 2018, KIRO-TV, a CBS-affiliated TV sta- tion in Seattle, partnered with RIP Medical Debt to pay off $1 million worth of medical debt. Covenant Church's donation combined with a donation by NBC 5's parent company and checks sent in to the television station have resulted in more than $18 million in medical debt eliminat- ed in North Texas in less than two months, ac- cording to the report. n New York oncology practice files for bankruptcy following FBI raid By Ayla Ellison C CS Oncology in Amherst, N.Y., a private oncology practice that is under federal investigation, filed for Chapter 11 bank- ruptcy protection April 2, according to The Buffalo News. Here are four things to know. 1. CCS Oncology and its affiliated companies owe $18.1 million to CCS' 20 largest unsecured creditors. Most of the debt is owed to Bank of America. The bank sued CCS Oncology after its owners defaulted on more than $16 million in loans, according to The Buffalo News. 2. CCS filed for bankruptcy following a raid by FBI agents in late March. The agents were gathering information related to an ongo- ing investigation into possible billing fraud at the practice, accord- ing to The Buffalo News. Company officials have denied any wrong- doing and no charges have been filed against CCS or its executives. 3. CCS' bankruptcy filing also came shortly after a federal judge is- sued an order allowing Bank of America to seize the company's as- sets. The bankruptcy filing places the Bank of America proceedings on hold, according to The Buffalo News. 4. CCS told The Buffalo News the practice will continue to serve oncology patients during the restructuring process. "We are now undertaking financial restructuring, through which we expect to achieve long-term financial sustainability and the flexibility to serve the community," the company said in a statement to The Buffalo News. n Moody's: Preliminary nonprofit healthcare profitability margins at 10-year low By Kelly Gooch T he nonprofit hospital median operat- ing cash flow margin decreased to 8.1 percent in fiscal year 2017, marking the lowest level seen since the 2008-09 reces- sion, according to preliminary financial data from Moody's Investors Service. e revenue decline comes amid expense growth and pinched revenue growth. Here are five report insights to know. 1. e nonprofit hospital median operating cash flow margin was 8.1 percent in fiscal year 2017 compared to 9.5 percent the year prior. 2. e nonprofit hospital annual median reve- nue growth rate decreased 2.2 percent in fiscal year 2017 compared to the year prior, while the median expense growth rate fell 1.7 per- cent. Pinched revenue growth was attributed to factors such as declining reimbursement from payers, as well as median growth in out- patient visits (2.2 percent) outpacing median growth in inpatient hospitalizations (1.2 per- cent). Moody's expects nonprofit hospitals' credits to continue to be stressed by the aging population and declining reimbursement. 3. Nonprofit hospital's median absolute un- restricted cash and investments increased 8.2 percent in fiscal year 2017, partially due to strong market returns, according to Moody's. is compares to 3.8 percent in fiscal year 2016. But the agency reported this growth was offset by median days cash on hand, which only increased 1.5 percent as organizations were pressured by labor, technology and sup- ply costs. Moving forward, Moody's expects limited liquidity improvement as expenses grow and capital spending needs increase. 4. Due to weaker operating performance, non- profit hospitals generally saw tempered lever- age ratios. is is despite the fact median total absolute debt decreased 1.7 percent in fiscal year 2017, according to Moody's. "Operating challenges and increased debt issuance in the fourth quarter of calendar year 2017 will keep debt service coverage measures subdued," the agency wrote. 5. e fiscal year 2017 preliminary financial data from Moody's is in line with the agen- cy's negative outlook on the nonprofit health- care and hospital sector. e data was based on audited fiscal year 2017 financial state- ments for 160 nonprofit healthcare organiza- tions, including freestanding hospitals as well as single- and multi-state health systems. n

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