Issue link: https://beckershealthcare.uberflip.com/i/759108
29 CFO / FINANCE Geisinger Gets Revenue Boost From Acquisitions By Ayla Ellison D anville, Pa.-based Geisinger Health System recorded an operating surplus of $167.5 million in the fiscal year that ended June 30, up nearly 5 percent from an operating surplus of $159.8 million in the year prior. Geisinger said revenue increased 21.4 percent year over year to $5.5 billion in fiscal year 2016. The financial boost was attribut- able, in part, to an increase in patient service revenue. Geisinger said admissions were up 34.4 percent in the most recent fiscal year compared to the year prior. This was largely due to the sys- tem's acquisitions of AtlantiCare Health System in Atlantic City, N.J., and Holy Spirit Hospital in Camp Hill, Pa. Geisinger's health plans also contributed to the system's revenue growth, as health plan membership grew 8.2 percent year over year. n Dartmouth-Hitchcock Lowers Layoffs to 84 By Kelly Gooch Lebanon, N.H.-based Dartmouth-Hitchcock will lay off 84 employees to reduce costs, according to a Valley News report. The layoffs are part of "a performance improvement process, mostly related to reducing our overall expenses," after closing the fiscal year that ended June 30 with an unexpected $12 million and a negative 0.8 percent operating margin, Dartmouth-Hitchcock President and CEO James Weinstein, DO, said in the article. Dartmouth-Hitchcock previously announced between 270 and 460 layoffs. However, in a memorandum to D-H employees, Dr. Weinstein said managers had concluded they would be "able to largely achieve our goal" by attrition, delaying some new hires and reducing the number of open and un- filled positions, according to the report. n Moody's: For-Profit Hospital Operators Continue to Gain Scale Through M&A By Ayla Ellison M any for-profit hospital operators are strengthening market share and expanding service offerings through acquisitions, according to a Moody's Investors Service report. Los Angeles-based Prospect Medical Holdings and Brentwood, Tenn.-based LifePoint Health are among the conservatively capitalized companies that expanded their foot- prints this year. Prospect Medical Holdings expanded its reach in July with the acquisition of Spring- field, Pa.-based Crozer-Keystone Health System's five hospitals, physician network and other facilities. LifePoint expanded its network in January with the acquisition of St. Francis Hospital in Columbus, Ga. at same month, Duke LifePoint Healthcare, a joint venture of Durham, N.C.-based Duke University Health System and LifePoint Health, acquired two North Carolina hospitals, which were previously owned by Dallas-based Tenet Healthcare. LifePoint extended its reach again in February when it acquired Provi- dence Hospitals, a two-hospital system in Columbia, S.C. Moody's noted not all for-profit hospital operators are growing. Franklin, Tenn.-based Community Health Systems is divesting facilities, and Tenet is reducing the number of hos- pitals it wholly owns, according to Moody's. n Tenet, Humana Rift Affects 750k in South Florida By Morgan Haefner A s of mid-October, a contract dispute between Dallas-based Tenet Healthcare and payer Humana affected up to three-quarters of a million south Florida residents, Sun Sentinel reported. Tenet terminated its network agreement Sept. 30 with the Louisville, Ky.-based insurer for Medicare Advantage, commercial plans, Medicaid, individual health plans of- fered through the public exchange and Tricare product offerings. Tenet runs 10 hospitals in south Florida, according to the report. Humana policyholders affected by the dis- pute will have to pay more out of pocket to continue care with Tenet facilities and providers. Emergency care and some long-term treatments will not be affected. At the time of publication, Humana and Tenet were in ongoing negotiations. n