53.8 F
Laguna Hills
Tuesday, Mar 19, 2024
-Advertisement-

ROLLING ALONG

Revenue growth was solid for Orange County hospitals during a year that saw one big hospital acquisition and the chief executive of the county’s biggest hospital step down.

Overall, the county’s 32 largest hospitals reported net patient revenue growth of 9% to $4.1 billion for the 12 months ended Sept. 30, according to this week’s Business Journal list. Last year’s group of top hospitals reported a 7% hike in annual revenue.

Net operating income grew 16% to $323 million for the top hospitals. Revenue and income results are taken from data compiled by the Office of Statewide Health Planning and Development.






Twenty-three of the 32 hospitals on the list recorded a revenue gain during the period. Six had lower patient revenue, while two of the largest hospitals,No. 3 St. Joseph Hospital in Orange and No. 5 Mission Hospital in Mission Viejo,said they had no change.

No. 14 Kaiser Permanente Anaheim Medical Center declined to make its results available.

The hospital industry faces its share of challenges. There’s an ongoing nursing shortage, which has pushed salaries up, and investment in expensive medical technologies has nipped into profits.

On the plus side, hospitals have won more attractive contracts with health maintenance organizations and other insurers.

One of the biggest local stories playing out is at No. 1 University of California Irvine, Medical Center. Last week Ralph Cygan stepped down as chief executive amid an investigation into the hospital’s troubled liver transplant program.

The Orange-based hospital shut its liver program in November after the federal Centers for Medicare and Medicaid Services pulled certification in the wake of mismanagement and allegations of poor care.

Thirty-two patients died while waiting for transplants during the past two years, and UCI Medical Center rejected livers that other transplant programs accepted, according to investigators.

Meanwhile, UCI Medical Center retained its No. 1 ranking for the third consecutive year with 14% growth in patient revenue to $523 million and a 26% rise in profit to $135 million.

No. 2 Hoag Memorial Hospital Presbyterian, which recently opened its $200 million Sue and Bill Gross Women’s Pavilion, saw its net patient revenue grow 12% to $488 million. Hoag also saw its net income grow 15% to $94 million.

Orange-based St. Joseph Health System recorded solid revenue results at its three local hospitals: St. Joseph Hospital in Orange, Mission Hospital in Mission Viejo and No. 4 St. Jude Medical Center in Fullerton.

Revenue at St. Joseph Hospital was flat at $359 million though its income declined to $13 million from $45 million in the year-ago period.

St. Jude’s revenue grew 11% to $310 million, versus a year earlier, though income dipped 7% to $49 million.

At Mission Hospital, patient revenue also was flat at $248 million in the period. The hospital’s income fell 22% to $19 million.


Memorial Adds Hospital

Long Beach-based Memorial Health Services Inc. placed two of its local facilities in the top 10.

Memorial’s Saddleback Memorial Medical Center in Laguna Hills checked in at No. 7, with revenue gaining 21% to $242 million. Income grew to $16 million, compared to $10 million a year ago.

The hospital’s results were aided by Memorial’s acquisition last year of San Clemente Hospital & Medical Center, whose results were folded into Saddleback’s.

No. 9 Anaheim Memorial Medical Center posted a 2% revenue decline to $153 million.

No. 6 Children’s Hospital of Orange County saw patient revenue jump 21% to $244 million. The Orange-based hospital recorded a profitable year with income of $6.8 million.

No. 8 Fountain Valley Regional Hospital & Medical Center reported a 19% jump in revenue to $215 million, with its loss narrowed to $5.1 million, versus $28 million a year ago.

Fountain Valley Regional is one of five hospitals left in OC that are operated by Dallas-based Tenet Healthcare Corp. Tenet has shucked off many of its California hospitals during the past two years amid financial troubles stemming from allegations it overcharged Medicare.

Four of its former hospitals were bought last year by Costa Mesa-based Integrated Healthcare Holdings Inc.: No. 10 Western Medical Center-Santa Ana, No. 19 Western Medical Center-Anaheim, No. 20 Coastal Communities Hospital in Santa Ana and No. 23 Chapman Medical Center in Orange (see related story, page 27).

Overall, the number of licensed hospital beds increased slightly to 6,369 during the past year. Total hospital employment rose 4% to 34,299 workers.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-