Becker's Hospital Review

53 CFO / FINANCE Shuttered Texas hospital strikes lease deal By Ayla Ellison U niversity of Texas Medical Branch at Galveston entered into a letter of intent to lease Bay Area Regional Medical Center in Webster, Texas, which closed in May. "This is a unique opportunity for UTMB Health to advance our mission of education, research and patient care," said David L. Callender, MD, president of the university, in a statement to the Hous- ton Chronicle. "The Webster location will complement our existing facilities on our League City Campus and in surrounding areas, as well as our future plans for educa- tion and research activities in the Bay Area." UTMB has not released offi- cial plans for how the prop- erty will be used, according to the report. n Texas Health Resources' net income sinks 63% in first half of 2018 By Ayla Ellison A rlington-based Texas Health Re- sources saw revenues increase in the first six months of this year, but the system ended the period with lower operating income and net income than in the first half of 2017, according to its financial documents. Texas Health Resources reported oper- ating revenues of $2.3 billion in the first half of 2018, up 2 percent from $2.26 billion in the same period of the year prior. However, higher expenses offset the system's revenue gains. Texas Health Resources' expenses grew from $2.14 billion in the first half of 2017 to $2.19 billion in the first six months of this year, a 2.6 percent year-over-year increase. The system ended the first half of this year with operating income of $114.1 million, down from $123.6 million in the same period of 2017. After factoring in nonoperating gains, which dropped 75.2 percent year over year, Texas Health Resources ended the first six months of 2018 with net income of $156.3 million, down 63 percent from $421.6 million in the same period a year earlier. n U of Kansas Health System acquires competing hospital By Ayla Ellison K ansas City-based University of Kan- sas Health System completed the purchase of Great Bend (Kan.) Re- gional Hospital and its affiliated clinics. Historically, Great Bend Regional com- peted for patients and market share with University of Kansas Health System's other hospitals, including Pawnee Valley Com- munity Hospital in Larned, Kan., and Hays (Kan.) Medical Center. The hospitals will now collaborate as one system. "As healthcare across the country evolves, we are taking a new approach in Kansas," said Bob Page, president and CEO of University of Kansas Health System. "Our health system providers in Great Bend, Hays, Larned, Topeka and throughout the Kansas City metro area are keeping care close to home while expanding access to the most advanced treatment options only an academic medical center can provide. Together, we can ensure people in Great Bend and across the state of Kansas have access to the right level of care, delivered in the most effective way." Great Bend Regional will be renamed University of Kansas Health System Great Bend Campus. n Partners' Q3 operating income nearly doubles By Ayla Ellison B oston-based Partners HealthCare saw its operating income rise in the third quarter of fiscal year 2018 despite a decline in reve- nues, according to financial documents released in August. Partners saw operating revenues decline 3 percent year over year to $3.3 billion in the third quarter of 2018. e health system's growth in provider revenue was offset by a 64 percent decline in insurance reve- nue. Partners said the decrease in insurance revenue was attributable to the transition of members from Medicaid managed care programs into the new MassHealth ACO program in March. Aer accounting for a 5 percent decrease in expenses, Partners ended the third quarter of fiscal 2018 with operating income of $91 million, compared to the third quarter of fiscal year 2017, when the health sys- tem posted operating income of $50.4 million. e health system reported a 2.7 percent operating margin for the three months ended June 30, up from a 1.8 percent margin in the same period of 2017. "Strong performance by our hospitals, physicians and insurance operation coupled with a continued focus on expense management through our Partners 2.0 initiative has enabled us to realize an oper- ating margin within our 2 to 3 percent target," said Peter K. Markell, treasurer and CFO of Partners HealthCare. Aer factoring in nonoperating gains of $183.7 million, Partners end- ed the third quarter of fiscal 2018 with net income of $274.6 million. at's compared to the same period of 2017, when the system reported nonoperating gains of $4.5 million and net income of $54.9 million. n

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