Issue link: https://beckershealthcare.uberflip.com/i/1007936
19 CFO / FINANCE 104-bed Alabama hospital to close By Alyssa Rege R MC Jacksonville (Ala.), the city's only hospital, will shutter June 30, with its property gifted to nearby Jacksonville State Universi- ty, according to AL.com. The Healthcare Authority of the City of Anniston (Ala.), which operates the 104-bed hospital's parent company, Anniston-based RMC Health System, confirmed the closure in a May 17 news release obtained by Becker's Hos- pital Review. RMC Health System purchased the hospital in 2013. Officials said the hospital campus will be gifted to the university, which is still coming to terms with the aftermath of a tornado that damaged several campus buildings March 19, according to the news release. "In today's volatile healthcare environment, sustaining under-utilized, high-cost services and facilities is not fiscally responsible," Billy Griz- zard, chairman of the Healthcare Authority of the City of Anniston, said in a statement. "RMC's board and leadership team have carefully eval- uated the most viable options for the future of our health system and believe that reallocating our resources and services will best serve res- idents of Calhoun County and surrounding communities. The difficult decision to close was not made lightly." The 42-year-old hospital's emergency room and ancillary services sup- porting the ER will remain operational until 11:59 p.m. June 30. Certain other services provided by the hospital will transition to other RMC fa- cilities from May 17 to June 30, the report stated. The health system's human resources team will assist RMC Jacksonville employees in finding other job opportunities within the health system, officials said in the news release. n Blue Cross denied appeal in lawsuit alleging it sank $40M hospital deal By Ayla Ellison I n April, a federal judge denied Blue Cross & Blue Shield of Rhode Island's motion for sum- mary judgment in an antitrust suit filed by Bos- ton-based Steward Health Care. On May 15, the judge denied the insurer's request to immediately appeal the April ruling, meaning BCBS of Rhode Island will have to face the antitrust suit, according to Law360. Here are five things to know: 1. Landmark Medical Center in Woonsocket, R.I., filed for receivership in 2008 and spent subsequent years looking for a buyer. In June 2011, Steward an- nounced plans to buy the hospital. Steward backed out of the deal in September 2012 aer failing to reach an acceptable agreement with BCBS of Rhode Island. 2. Steward subsequently filed an antitrust suit against BCBS of Rhode Island, claiming the insurer obstructed Steward's attempted $40 million take- over of Landmark Medical Center to keep Steward from entering the Rhode Island market, according to Law360. 3. Steward alleged BCBS of Rhode Island "purpose- ly thwarted Steward's acquisition and planned revi- talization of Landmark" by refusing to negotiate in good faith for reasonable reimbursement rates for Landmark and actively conspiring with Providence, R.I.-based Lifespan and Woonsocket-based un- dermist Health Center to help block the deal. 4. BCBS of Rhode Island filed a motion for summa- ry judgment in the case in 2017, and U.S. District Judge William E. Smith denied the motion in April. In his opinion, Mr. Smith said Steward has "raised a triable issue as to whether Blue Cross engaged in a predatory refusal to deal by blocking Steward from entry into the Rhode Island healthcare and health insurance markets," according to WPRI. On May 15, the judge denied the insurer's request to appeal his ruling to the 1st U.S. Circuit Court of Appeals. 5. Blue Cross spokesperson Gail Carvelli told WPRI the insurer was disappointed by the ruling. "We re- main confident, however, that Steward Health Care's claims are without merit, and that we will prevail at trial," said Ms. Carvelli. "We will continue to de- fend our mission to provide high-quality, affordable health insurance to Rhode Islanders." n Banner Health's net income plunges 55% in Q1 By Ayla Ellison B anner Health, a 28-hospital nonprofit system based in Phoenix, saw its operating income rise in the first quarter of 2018, but the system's net income plummeted year over year. Banner's revenues climbed 7.3 percent year over year to $2.1 billion in the first quarter of 2018, according to recently released bondhold- er documents. The system said the financial boost was attributable to higher patient volume and reimbursement rates, as well as growth in premium revenues from its insurance plans. Higher expenses offset some of Banner's revenue gains in the first quarter of this year. The system said expenses grew 6.9 percent year over to $2.01 billion in the first quarter of 2018. Banner ended the first quarter of this year with operating income of $82.2 million, up from $68.6 million in the same period a year earlier. After factoring in nonoperating income, which dropped 87 percent year over year to $19.6 million, Banner ended the first quarter of 2018 with net income of $94.6 million. That's down 55 percent from the first quarter of 2017, when the system posted net income of $208.4 million. n