Becker's Hospital Review

9 CFO / FINANCE HCA, Tenet profits sink: 10 things to know By Ayla Ellison H CA Healthcare and Tenet Healthcare, two of the largest for-profit hospital operators in the U.S., reported lower net income in the second quarter of this year than in the same period of 2021. HCA Healthcare 1. Nashville, Tenn.-based HCA Healthcare, a 182-hospital system, reported revenues of $14.82 billion in the second quarter of this year, up from $14.44 billion in the same period last year. 2. HCA's net income totaled $1.16 billion in the second quarter of 2022, down from $1.45 billion in the same period a year ago. e second quarter of this year included $32 million in losses on the sales of facilities and and losses on retirement of debt of $78 million. 3. HCA said same-facility admissions declined 1.2 percent year over year in the second quarter of this year. Emergency room visits were up 7.3 percent year over year. 4. "Many aspects of our business were positive considering the challenges we faced with the labor market and other inflationary pressures on costs," Sam Hazen, CEO of HCA, said in a July 22 earnings release. "Our teams executed well as they have in the past through other difficult environments. Again, I want to thank them for their dedication and excellent work." 5. For the six months ended June 30, HCA reported net income of $2.43 billion on revenues of $29.77 billion. In the same period a year earlier, the company posted net income of $2.87 billion on revenues of $28.41 billion. Tenet Healthcare 1. Dallas-based Tenet Healthcare reported revenues of $4.64 billion in the second quarter of this year, down from $4.95 billion in the same period a year earlier. e decrease was primarily attributed to the sale of the company's Miami-area hospitals in the third quarter of 2021 and the impact of a cybersecurity incident. 2. e 60-hospital system ended the second quarter of this year with net income of $38 million, down from $119 million in the same quarter last year. 3. Same-hospital admissions adjusted for outpatient activity were down 5.3 percent year over year in the second quarter of this year. Tenet said a cybersecurity incident in April that temporarily disrupted some acute care operations contributed to the decline. 4. "We demonstrated resilience in the face of a disruptive cyber attack and discipline through challenging market conditions," Saum Sutaria, MD, CEO of Tenet, said in a July 21 earnings release. "e ongoing diversification of Tenet driven by our capital efficient ambulatory expansion is a key differentiator that presents compelling opportunities for growth in earnings and free cash flows." 5. Looking at the six months ended June 30, Tenet reported net income of $178 million on revenues of $9.38 billion. In the same period of 2021, the company reported net income of $216 million on revenues of $9.74 billion. n 8 hospitals laying off workers By Ayla Ellison Several hospitals and health systems are trimming their workforces due to financial and operational challenges. 1. Columbus-based OhioHealth is eliminating 637 jobs, its biggest layoff ever. The move is part of a plan to contract out some services the system now provides in house. Over the next three to five months, the system will eliminate information technology and revenue cycle management positions. Of those, 567 are in information technology. OhioHealth said the IT work will be handled by the professional services company Accenture, and AGS Health will handle the revenue cycle business. The health system informed workers of the cuts July 7. 2. Trinity Health announced July 11 it will close its West Springfield, Mass.-based Trinity Health at Home home healthcare and hospice agency, laying off 60 workers in the process. The layoffs are effective Sept. 5 3. Santa Cruz Valley Hospital in Green Valley, Ariz., closed June 30. The closure resulted in 315 workers losing their jobs. CEO Steve Harris said the decision to close Santa Cruz Valley Regional Hospital was made after it was unable to secure emergency department staffing for the Fourth of July weekend. The hospital issued a Worker Adjustment and Retraining Notification Act notice June 20, which gave the hospital's 315 workers notice of the mass layoff. 4. Penn Highlands Connellsville (Pa.) Hospital will lay off 27 employees and eliminate 20 additional jobs through retirement and attrition, The Daily Courier reported July 14. 5. Claxton-Hepburn Medical Center in Ogdensburg, N.Y., is cutting approximately 5 percent of its 800-person workforce as it makes changes aimed at improving revenue cycle functions. The hospital said in late June that it is planning to outsource revenue cycle functions and lay off revenue cycle staff. 6. Citing skyrocketing expenses and flat revenue, St. Charles Health System in Bend, Ore., will cut 181 positions, according to a May 18 announcement. The workforce reduction includes laying off 105 caregivers and eliminating 76 vacant positions. The layoffs affect mainly nonclinical workers, including many leadership positions. In mid-July, the health system laid off two executives. 7. Bristol (Conn.) Health on June 16 eliminated 31 positions, including 10 that were filled and 21 that were vacant. The majority of those laid off were in management. 8. Toledo, Ohio-based ProMedica is laying off an unspecified number of nonclinical employees, the Toledo Blade reported July 5. A ProMedica spokesperson told Becker's Hospital Review the layoffs represent less than 1 percent of the health system's workforce and are "primarily related to pilots and processes outside of our core business as well as certain corporate services." n

• Cover