Issue link: https://beckershealthcare.uberflip.com/i/1383677
22 CFO / FINANCE Atrium Health's net income hits $279M By Alia Paavola C harlotte, N.C.-based Atrium Health recorded a net income of $279.3 mil- lion in the first quarter of 2021 aer posting a $940.7 million net loss in the first quarter of last year, according to financial documents unveiled May 11 at the health system's quarterly board meeting. In the quarter ended March 31, Atrium Health saw its net operating revenue grow 8.4 percent to $2 billion. e revenue increases were attributed to a boost in higher-acuity patient volumes, improved commercial pay- er mix and increases in net reimbursement rate, including COVID-19-related Medicare reimbursement boosts. Aer factoring in expense growth of 8.4 per- cent, the health system ended the quarter with an operating loss of $17.6 million. is com- pares to an operating loss of $30.6 million re- corded the same period a year prior. Atrium Health said the operating loss came as it faced its peak COVID-19 volume in January. Atrium Health's net income was largely at- tributed to nonoperating gains, which totaled $296.8 million in the first quarter. is com- pares to a nonoperating loss of $910.1 million recorded in the same period last year. Atrium Health CFO Anthony DeFurio said during a board meeting May 11 that the sys- tem invested $154 million, or 7.7 percent of its revenue, in ongoing capital investments in the first quarter, including facility up- grades, IT system updates and constructing medical office buildings. One of the large capital projects Atrium Health is focused on is its innovation dis- trict in Charlotte, expected to boost the local economy and draw partners and talent from various sectors. n UHS, Walgreens, Labcorp among S&P 500 companies with lowest worker wages By Alia Paavola S everal healthcare companies, including King of Prussia, Pa.- based Universal Health Services, Walgreens and Labcorp, were called out in a May report that highlighted the 100 S&P 500 companies with the lowest median worker wages in 2020. The Institute for Policy Studies, a left-leaning think tank, pub- lished the 27th annual version of the report that discusses aver- age CEO pay versus worker pay. It found that CEO-worker pay ratios averaged 830 to 1 in 2020; CEO compensation rose 29 percent year over year to an average $15.3 million; and median worker pay declined 2 percent year over year to $28,187 on average in 2020. Many of the companies on the list are in the fast-food or retail sec- tor. Below are six healthcare companies on the list: • Align Technology. Align CEO Joseph Hogan made $15.5 million in 2020, while the company's median worker salary was $11,961. • Walgreens. The median worker pay for Walgreens was $33,396 in 2020. In comparison, Walgreens CEO Stefano Pessina made $17.5 million in total compensation last year. • UHS. Then-CEO Alan Miller, who stepped down this year, made $13.2 million in 2020. The median worker salary was $43,337. • Becton Dickinson. CEO Thomas Polen had a salary of $11.7 mil- lion in 2020, while median worker salary was $39,669. • Labcorp. CEO Adam Schechter made $14.7 million in total com- pensation last year, while its median worker salary was $41,670. • Baxter International. CEO José E. Almeida made $15.9 million last year, while median worker salary was $46,986. n CMS releases final rule on CJR model: 5 things to know By Morgan Haefner C MS published a final rule April 29 to extend and update its Comprehensive Care for Joint Replacement model. Five things to know: 1. The final rule extends the CJR model for three performance years, from October 2021 through December 2024. However, the extension only pertains to hospitals in mandatory regions of the program. 2. A definition of CJR episode now includes low- er extremity joint replacement procedures per- formed in the hospital outpatient department. 3. Target price calculation was changed under the rule. The basis for the target price will now be the most recent year of claims data instead of three years of claims data. 4. The model's reconciliation process was re- vised. Two reconciliation periods under the previous process will narrow to one. The single period will take place six months after each per- formance year ends. 5. CMS will exclude rural and low-volume hospi- tals in the model's 34 mandatory metropolitan statistical areas and any voluntary hospitals in the 33 metropolitan statistical areas that opted in the model's third through fifth performance years. n