Issue link: https://beckershealthcare.uberflip.com/i/1020287
16 CFO / FINANCE Quorum hospital declares closure hours after sale announcement By Alyssa Rege A rural Tennessee hospital an- nounced plans to close July 27, the same day its parent company, Brent- wood, Tenn.-based Quorum Health, revealed plans to sell the facility. Quorum Health revealed plans to sell 45- bed McKenzie Regional Hospital to Mem- phis-based Baptist Memorial Health Care July 27. However, McKenzie Regional offi- cials said later the same day it will discontin- ue most patient services, including its emer- gency department, by Sept. 15, and will begin reducing inpatient admissions during the coming weeks. Once the hospital closes, Baptist Health Care will operate the facility as an outpatient diag- nostic imaging center and sleep center. e health system will also transition ambulance services to another provider. Hospital leadership met with its roughly 200 physicians and staff July 27 to discuss transi- tion plans. Employees will receive assistance from the hospital to find opportunities with other regional employers, and will continue to receive pay and benefits until Sept. 29. "It has been our privilege to care for this com- munity and we are extremely grateful to our dedicated team of employees, nurses, phy- sicians, volunteers and board members for their tireless service to our patients and their families. Most of all, we are grateful to our neighbors and friends for allowing us to serve as your trusted healthcare resource for more than 40 years," said McKenzie Regional CEO Michael Morrical in a prepared statement. McKenzie Regional's closure reflects a nation- al trend of rural hospitals closing due to fall- ing admissions and declines in revenue. Of- ficials noted patients will have access to care at nearby facilities, including 70-bed Baptist Memorial Hospital-Huntingdon (Tenn.), 10 miles away from McKenzie Regional, and Paris, Tenn.-based Henry County Medical Center, a 142-bed facility 15 miles away from McKenzie Regional. n Arizona hospital emerges from bankruptcy, lays off 60 By Ayla Ellison S anta Cruz Valley Regional Hospital in Green Valley, Ariz., previously Green Valley (Ariz.) Hospital, laid off 60 em- ployees July 31, less than a week after it emerged from Chapter 11 bankruptcy, ac- cording to Green Valley News. The hospital entered Chapter 11 bankrupt- cy in April 2017. At that time, the 49-bed hospital's liabilities totaled $88 million. In February, the bankruptcy court approved the sale of the hospital to Lateral GV, part of equity firm Lateral Investment Manage- ment. The hospital emerged from bankruptcy in mid-July, but it is still experiencing financial troubles, according to layoff notices given to employees July 31. Santa Cruz Valley Regional Hospital CEO Kelly Adams told Green Valley News the layoffs will not affect patient services. Once the layoffs are completed, the hospital will have between 250 and 260 employees, Mr. Adams said. n UHS sees jump in net income, ups reserve for DOJ investigation to $43M By Ayla Ellison K ing of Prussia, Pa.-based Universal Health Services saw revenues and net income increase in the second quarter of 2018 compared to the same period of the year prior. Here are five things to know about UHS' financial results: 1. UHS' revenues increased 2.6 percent year over year to $2.7 billion in the quarter ended June 30, 2018. 2. The revenue growth was partially due to increased patient admissions. Admissions when adjusted for outpatient activity increased 1.9 percent on a same-facility basis in the second quarter of 2018 compared to the same period of the year prior. At UHS' behavioral healthcare facilities, adjusted admissions increased 1.2 percent on a same-facility basis year over year. 3. UHS saw expenses increase from $2.3 billion in the second quarter of 2017 to $2.4 billion in the second quarter of 2018. 4. In the second quarter of 2018, UHS said it added $9.5 million to its re- serve for an ongoing investigation into its behavioral healthcare facilities by the Department of Justice. The reserve now totals about $43 million. "Changes in the reserve may be required in future periods as discussions with the DOJ continue and additional information becomes available," UHS said in an earnings release. "We cannot predict the ultimate reso- lution of this matter and therefore can provide no assurance that final amounts paid in settlement or otherwise, if any, or associated costs, will not differ materially from our established reserve." 5. UHS ended the second quarter of 2018 with net income of $226.1 mil- lion, compared to $185.4 million in the same period of the year prior. n