Becker's Hospital Review

13 CFO / FINANCE Ascension bounces back from 2020, bringing in $5.7B of net income By Ayla Ellison S t. Louis-based Ascension rebounded in fiscal year 2021, ending the pe- riod with higher revenue and net income, according to financial doc- uments. The 146-hospital system reported operating revenue of $27.2 billion in fis- cal year 2021, up from $25.3 billion a year earlier. Net patient service revenue increased in the most recent fiscal year, but the growth wasn't attributed to higher patient volume. Hospital admissions, emer- gency room visits and urgent care visits declined year over year because of surges of COVID-19 and patient hesitation to seek care, the system said. Ascension's expenses climbed 3.8 percent to $26.7 billion in fiscal year 2021. The increase was attributed to several factors, including higher sala- ries, wages and supply expenses. Ascension ended the most recent fiscal year with operating income of $676.3 million, compared to an operating loss of $639.4 million in fiscal year 2020. After factoring in nonoperating items, including investment income, Ascen- sion reported net income of $5.7 billion in fiscal 2021. A year earlier, the health system posted a net loss of $1.04 billion. As of June 30, Ascension had 341 days' cash on hand, compared to 284 days at the end of fiscal 2020. n Unvaccinated COVID hospitalizations cost $5.7B in 3 months, analysis says By Alia Paavola A surge in COVID-19 hospitalizations among unvaccinated adults cost the U.S. health system $5.7 billion from June to August of this year, according to a new Kaiser Family Foundation analysis. For the analysis, Kaiser Family Foundation analyzed CDC data on hospitaliza- tions of adults with COVID-19, because many children still are ineligible for the COVID-19 vaccine. The Kaiser Family Foundation found that there were about 32,000 COVID-19 hospitalizations among unvaccinated U.S. adults in June, 68,000 in July and 187,000 in August. With COVID-19 hospitalizations costing on average an estimated $20,000 each, the Kaiser Family Foundation said these hospitalizations have cost the U.S. health system billions of dollars since the beginning of June and large- ly were preventable by vaccination. "The monetary cost of treating unvaccinated people for COVID-19 is borne not only by patients but also by society more broadly, including taxpay- er-funded public programs and private insurance premiums paid by work- ers, businesses, and individual purchasers," the Kaiser Family Foundation wrote. During the study period of June 1 to Aug. 31, the CDC reported 7,617 vac- cinated patients who had breakthrough infections and were hospitalized. n 10 ACOs with the most shared savings in 2020 By Alia Paavola A COs participating in the Medicare Shared Savings Program in 2020 earned performance bonuses total- ing nearly $2.3 billion and saved Medicare a record $1.9 billion, CMS said Aug. 25. CMS said 345 out of 513 ACOs, or 67 percent, earned shared savings payments in 2020, but the data shows that ACOs participating in downside risk models were more likely to earn the bonus payments. In particular, 88 percent of the two-sided risk models and 55 percent of one-sided risk models earned the performance payment. ACOs in the program work together to co- ordinate care of Medicare beneficiaries, en- suring they receive the right care at the right time while preventing duplication of services and medical errors. "e 2020 Shared Savings Program results continue to demonstrate the impact ACOs have in improving quality and lowering healthcare costs," CMS Administrator Chiq- uita Brooks-LaSure said. Here are the top 10 ACOs for total earned shared savings in 2020, according to CMS data updated Aug. 25. 1. Palm Beach Accountable Care Organiza- tion — $54.3 million 2. Steward National Care Network — $51.5 million 3. Baylor Scott & White Quality Alliance — $47.1 million 4. Mass General Brigham ACO — $46.7 mil- lion 5. Privia Quality Network — $42.3 million 6. Millennium Accountable Care Organiza- tion — $40.7 million 7. Advocate Physician Partners Accountable Care — $37.6 million 8. Silver State ACO — $32.7 million 9. Mercy Health ACO — $29.6 million 10. Mercy Health Select — $28.5 million n

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