Issue link: https://beckershealthcare.uberflip.com/i/1169964
19 CFO / FINANCE CEO exits amid Tennessee health system's financial troubles By Ayla Ellison L incoln Health System, a single-hospital sys- tem based in Fayette- ville, Tenn., is facing financial challenges and is in search of a CEO, according to TV sta- tion WAFF. During a board meeting Aug. 27, leaders discussed the finan- cial issues facing the nonprofit health system. Lincoln Health System CFO Bob Lonis report- ed an $8.4 million decline in year-over-year gross revenue for outpatient services, accord- ing to TV station WHNT. Admis- sions are down 10 percent from last year, according to WAFF. Leaders said they're explor- ing ways to address the coun- ty-owned system's financial issues and noted some service lines are performing well. Al- though emergency room vis- its and admissions are down, other services, such as those offered at the rehab and well- ness center, have exceeded expectations during the past year, according to WAFF. In addition to overcoming fi- nancial challenges, the health system is focused on finding a new CEO. Lincoln Health Sys- tem announced Aug. 21 that CEO Candie Starr is no longer with the company, accord- ing to WAFF. Board members didn't give a reason for Ms. Starr's departure during the meeting Aug. 27. She served as CEO for more than two years. Board members plan to request additional funding from the state, according to WAFF. n Banner Health's revenue climbs to $4.7B in first half of 2019 By Ayla Ellison B anner Health's revenue and net income were up year over year in the first half of 2019, according to unaudited financial documents. e Phoenix-based health system reported revenues of $4.7 billion in the first half of this year, up from $4.2 billion in the same period of 2018. Banner said the 11.6 percent boost was driven by growth in premium revenues from its insurance division coupled with increases in patient volumes and commercial reimbursement rates. Insurance premium revenue now represents 20 percent of Banner's total revenue. Operating expenses climbed 12.3 percent year over year to $4.6 billion in the first half of 2019. Banner said the increase was attributable to several factors, including opening new patient towers at its campuses in Phoenix and Tucson, Ariz., and adding more than 100 new physicians. Banner ended the first half of 2019 with operating income of $111.8 million, down from $127.3 million in the same period of 2018. Aer factoring in nonoperating items, Banner reported net income of $430.9 million in the first six months of this year. at's more than double the net income of $198.2 million the health system recorded in the same period of 2018. e year-over-year increase was fueled by investment income. "Investment income of $411.8 million, a 9.8 percent return from our comprehensive invest- ment program year to date, helped to bring the fair value of Banner's cash and investment portfolio over $5 billion," Banner said. n Horizon BCBS sues physician advocacy group over 'smear campaign' By Morgan Haefner H orizon Blue Cross Blue Shield of New Jersey sued a physician advocacy group after the group urged patients to fight the insurer's new claim over- sight contract, according to the New Jersey Record. Horizon filed a lawsuit in U.S. District Court against the New Jersey Doctor-Patient Alliance. The 350-member group represents independent physicians and other medical professionals like chiropractors and physical therapists. Horizon claimed the group launched a "smear campaign" against the insurer after it decided to sign a contract with American Specialty Health to review claims and determine medical necessity for Horizon members. In its criticism of the contract, the Doctor-Patient Alliance said that "there could be a steep increase in improper claim denials" due to the change, according to the New Jersey Record. The alliance called the contract "bad news" for Horizon pa- tients and claimed "cutting benefits appears to be the business model" of Ameri- can Specialty Health. Horizon requests in its lawsuit that the alliance take down any ads and petitions op- posing the contract. The insurer also wants the alliance to post "corrective adver- tising" and reimburse Horizon for any economic losses incurred by what it deems false and misleading advertising. The provider advocacy group rebutted, saying the lawsuit aimed to quiet free speech among its members and their patients. n