Becker's Hospital Review

26 CFO / FINANCE Premier Health to Close 491-Bed Ohio Hospital By Ayla Ellison G ood Samaritan Hospital in Dayton, Ohio, part of Dayton-based Premier Health, will close by the end of 2018. Premier said operating two hospitals — Good Samaritan and Miami Valley Hospital in Dayton — within 5 miles of each other has become unsustainable. "e impact of national changes in the healthcare industry, compounded by the changing face of Dayton over the past de- cade, made clear that Premier Health had to make significant changes to continue to serve the entire region and reach patients in innovative ways in their communities going forward," Premier officials said. Good Samaritan North Health Center in Dayton and other Good Samaritan facilities will become part of Miami Valley Hospital when Good Samaritan Hospital closes. The move is part of Premier's 2020 stra- tegic plan, which includes several initia- tives to position the health system for future success. "This was not an easy decision, but it is the right decision for our community," said Anita Moore, chair of Premier Health's board of trustees, regarding the planned hospital closure. "This announcement is a lot for all of us to absorb, and it brings with it a great deal of emotion. As a com- munity and as a health system, though, we will without a doubt look back some- day and realize that we emerged from this change stronger and more dedicated than ever to our mission." Good Samaritan Hospital, which was founded in 1932, is licensed for 491 beds and has more than 2,000 employees. Pre- mier did not say how many jobs would be cut when the hospital closes. Health system officials said they would try to find jobs for Good Samaritan employees in other Pre- mier Health facilities. n Cigna's Q4 Profits Fall 30.4%, But FY 2017 Net Income Up: 4 Things to Know By Morgan Haefner C igna posted lower net income in the fourth quarter of fiscal year 2017, but grew full-year profits by 19.8 percent year over year.Here are four things to know about Cigna's results. 1. Cigna grew revenues by 5.9 percent to $10.5 billion in the fourth quarter ended Dec. 31. That's compared to $9.9 billion recorded in the same period a year prior. Cigna attributed the increase to membership growth across its com- mercial insurance segments and a 6.8 percent uptick in premiums. 2. At the same time, Cigna saw benefits and expenses increase in the fourth quarter of 2017 to $9.8 billion, up 4.6 percent from $9.3 billion in the same period a year before. Year-over-year growth in medical costs and operating expenses contributed to the increase. 3. Cigna saw profits dip 30.4 percent in the fourth quarter of 2017 to $266 million, compared to $382 million reported in the same period a year prior. Despite a decline in profits in the fourth quarter, Cigna saw full-year 2017 net income grow 19.8 percent to $2.2 billion. That's up from $1.9 billion in fiscal year 2016. 4. Due to net financial benefits of U.S. tax reform, Cigna raisedminimum wage for its U.S. employees to $16 per hour and gave salary increases to employees above $16 an hour. Cigna anticipates the move will total $15 million-plus. n HCA Shares Hit Record High After Better-Than-Expected Earnings By Ayla Ellison N ashville, Tenn.-based HCA Healthcare, which operates 179 hospitals, saw revenue increase in the fourth quarter of 2017, but the company's net income declined year over year. Here are four things to know about HCA's financial performance. 1. HCA saw revenue increase 8.7 percent year over year to $11.6 billion in the fourth quarter of 2017. The company said revenue growth was driven by higher patient volume. HCA saw same facility admissions and emergency room visits increase 1.4 percent and 3.4 percent, respectively, year over year. 2. The system's expenses offset its revenue gains in the fourth quarter of 2017. HCA said operating expenses totaled $9.2 billion in the fourth quarter of 2017, up 9 percent from $8.4 billion in the same period of 2016. 3. After factoring in a $301 million charge related to the recently passed tax reform plan, HCA ended the fourth quarter of 2017 with net income of $474 million, down 48.5 percent from net income of $920 million in the same period of the year prior. 4. Excluding items, HCA earned $2.13 per share on $11.6 billion in revenue, which beat the average analyst estimate of $1.87 per share on $11.2 billion in revenue, according to Reuters. After releasing the better-than-expected fi- nancial results, HCA shares rose more than 9 percent to a record of $106.84. n

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