Issue link: https://beckershealthcare.uberflip.com/i/1169964
26 CFO / FINANCE Cleveland Clinic more than quadruples operating income By Ayla Ellison C leveland Clinic's revenues and operating income increased year over year in the second quarter of 2019, according to unaudit- ed financial documents. Cleveland Clinic's revenues climbed to $2.7 billion in the second quar- ter of this year, up 20 percent from $2.2 billion in the same period of 2018. The boost was largely attributable to higher net patient service revenue, which increased 20.5 percent year over year. The system's operating expenses were up 16 percent year over year in the second quarter of 2019. Expenses grew across all categories, includ- ing supplies, administrative services, and salaries, benefits and wages. Cleveland Clinic ended the second quarter of 2019 with operating in- come of $116.2 million, up from $25.1 million in the second quarter of last year. The system's operating margin was 4.4 percent in the second quarter of this year, compared to an operating margin of 1.1 percent in the same period of 2018. During the second quarter of this year, Cleveland Clinic's nonoperating gains totaled $110.3 million. That's compared to the second quarter of 2018, when the system reported nonoperating gains of $55.6 million. The system said the increase was primarily attributable to favorable changes in the financial markets. Cleveland Clinic ended the second quarter of 2019 with net income of $226.5 million, up from $80.7 million in the same period a year earlier. n Oscar Health strikes Berkshire Hathaway deal By Morgan Haefner O scar Health signed a reinsurance deal with a Berkshire Hathaway subsidiary, the health insurance startup shared in a second-quar- ter earnings statement cited by Forbes contributor Bruce Japsen. Oscar signed the agreement with Berkshire Hathaway's reinsurance subsidiary National Indemnity Co. It may mean Oscar is looking to ex- pand its individual and small group markets, according to Mr. Japsen. Oscar CFO Sid Sankaran said in the earnings statement: "Under the partnership, which is being reviewed by regulators, Oscar cedes 50 per- cent of its risk on the portfolio to NICO. This will allow Oscar additional capital flexibility to fuel our growth and further refine our already best- in-class technology stack." The news accompanies a $128 million underwriting profit the insurer posted in the second quarter of fiscal year 2019. That's compared to a $141 million underwriting profit in the same period last year. n How Anthem, UnitedHealth + 4 other payers fared in Q2 By Morgan Haefner A nthem, Centene, Cigna, Humana and UnitedHealth Group all reported higher profits in the second quarter of fiscal year 2019, while Molina Healthcare saw profits decline. Here's how the six payers fared in the three-month period ended June 30: 1. Anthem reported total revenues of $25.5 billion, up 11 percent from $22.9 billion recorded in the same period a year prior. Anthem ended the sec- ond quarter with a $1.1 billion profit, up 8.1 per- cent year over year. 2. Centene posted total revenues of $18.4 billion in the second quarter of this year, up 29.4 percent from $14.2 billion reported in the same period last year. Centene ended the quarter with a $495 million profit, up 65 percent from $300 million re- ported in the same period in 2018. 3. Cigna saw its total revenues climb 238 percent year over year to $38.8 billion, compared to $11.5 billion in the year prior. Cigna ended the second quarter with net income of $1.4 billion, compared to $808 million reported in the same period a year prior. 4. Humana saw its total revenues climb to $16.2 billion, up 13.9 percent from $14.3 billion recorded in the same period a year prior. e payer boosted its net income 387 percent in the second quarter of this year to $940 million, up from $193 million in the same period a year prior. 5. Molina Healthcare's total revenue fell 14.1 per- cent to $4.2 billion, compared to $4.9 billion in the same quarter a year prior. Molina ended the quarter with net income of $196 million, down 3 percent from $202 million reported in the same period a year prior. 6. UnitedHealth Group recorded total revenues of $60.6 billion, up 8 percent from $56.1 billion in the same quarter a year prior. Aer account- ing for expenses, UnitedHealth ended the second quarter with net income of $3.3 billion, up 12.7 percent from $2.9 billion recorded in the same quarter of 2018. n