Becker's Hospital Review

29 CFO / FINANCE Texas Children's Hospital Sees Operating Income Drop 66% in FY 2017 By Ayla Ellison T exas Children's Hospital in Houston saw reve- nues increase in fiscal year 2017, but the 767- bed hospital's operating income declined year over year. Texas Children's reported revenues of $3.6 billion in fiscal year 2017, up 18.7 percent from revenues of $3 billion in fiscal year 2016, according to recently re- leased bondholder documents. The hospital's patient service revenue was nearly flat year over year at $1.9 billion, but its premium revenue grew 53 percent year over year to $1.5 billion. However, the hospital's operating expenses out- paced revenue growth in fiscal year 2017. Texas Chil- dren's recorded expenses of $3.5 billion in the most recent fiscal year, up 20.1 percent from $2.9 billion the year prior. The hospital ended fiscal year 2017 with operating income of $15.6 million, down 66 percent from $45.6 million in fiscal year 2016. n Cleveland Clinic Florida Now Offers Concierge Medicine for $333 a Month By Ayla Ellison W eston-based Cleveland Clinic Florida is hoping to at- tract at least 300 patients to its new concierge medi- cine program in 2018, according to the Sun Sentinel. The program, which launched in January, offers patients a va- riety of services and benefits, including increased accessibility to their physician, longer appointments, a customized preven- tive care and wellness plan and a dedicated phone number to access the concierge medicine healthcare team. Cleveland Clinic Florida Concierge Medicine, which costs $333 a month, does not accept any private insurance plans and does not participate in any government programs, in- cluding Medicare. Cleveland Clinic Florida President Wael Barsoum, MD, said the system hopes to enroll 300 patients in the program this year. "We will explore expanding the program when we reach capacity," he said in a statement to the Sun Sentinel. n Humana Faces Backlash for Hiking Breast Cancer Drug Copays By Morgan Haefner H umana recently reclassified Herceptin — an intravenous drug used to treat metastatic breast cancer — as a nonpreferred drug in some Florida markets, CBS12 reports. Some Florida policyholders allege the change le them with 20 percent copays, or more than $900 dollars per monthly dose of Herceptin up to their yearly out-of-pocket limit. Nonpreferred drugs typically have high- er out-of-pocket costs for members than preferred drugs. In response to patient and patient advocates raising concerns about the policy change on Twitter, Humana said, "We remain committed to helping our members receive affordable access to their treatments. Our #Herceptin Medicare coverage is the same as most other plans, but we realize recent changes may affect some members." e insurer then asked members to send the company direct messages for support. In a statement to Becker's Hospital Review, Humana said, "We recog- nize the importance of medications like Herceptin. Herceptin remains covered in Humana's plans, as it has been since FDA approval. Hu- mana's 2018 Medicare cost-sharing structure for Herceptin changed under select Medicare Advantage plans in four markets and is now the same as most other Medicare Advantage plans and original Medicare." e insurer added it "is working to identify patient assistance grants for members who may need them." n Anthem Q4 Profits Surpass $1B After One-Time Tax Benefit: 3 Things to Know By Morgan Haefner A one-time $1.1 billion tax benefit under the new U.S. tax law sent Anthem's profits past the bil- lion-dollar mark for the fourth quarter of 2017. Here are three things to know about Anthem's financial results for the quarter ended Dec. 31, 2017. 1. Anthem recorded net income of $1.2 billion in the fourth quarter of 2017, compared to $368.4 million in the same period a year prior. In addition to the one- time tax benefit, Anthem's Medicare and group and self-funded businesses all saw higher enrollment year over year. 2. In the fourth quarter of 2017, Anthem recorded $22.6 billion in expenses, up 7.1 percent from the same period a year prior. At the same time, the insurer grew revenue 4.4 percent to $22.7 billion. 3. Anthem's full-year net income for 2017, including the one-time tax benefit, increased 55.6 percent to $3.8 billion, compared to $2.5 billion recorded in 2016. n

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