A year ago, Orange County hospital executives said the pandemic slowed revenue growth and they encouraged patients to not be afraid to visit clinics and hospitals.
That advice seems to have worked out well as Orange County’s hospitals rebounded nicely in 2021.
Net patient revenue climbed 9.6% to $9.6 billion among 24 hospitals on the Business Journal’s annual list for the 12 months ended Sept. 30. Last year, net patient revenue was down 1%.
Net income jumped 48% to $891.4 million. Last year, it dropped 17% due to a mix of unexpected costs associated with COVID-19 care and supplies and canceled elective procedures.
Outpatient visits jumped 12% to 3.9 million, far outpacing the 3.2% increase in patient days at hospitals.
UCI Tops
UCI Medical Center in Orange retained its No. 1 position with a 14% growth to $1.4 billion in net patient revenue.
“Last year, we delayed care and we said don’t come to hospitals,” Chief Executive Chad Leftaris told the Business Journal. “This year, we’re seeing a lot of catch-up between the surges.
“We are busier than ever. There’s this pent-up demand,” he said.
Hoag Memorial Hospital Presbyterian maintained the No. 2 spot for the third consecutive year. Last month it ended a decade long relationship with Providence.
“Although we are formally parting ways, we will have other opportunities to work together on behalf of the community,” Providence President of Operations Erik Wexler said at the time.
The split didn’t affect revenue at the two systems.
Hoag reported net patient revenue climbed 16%, the highest percent jump on the list, to $1.3 billion.
Providence’s No. 4 St. Joseph Hospital in Orange reported revenue climbed 7.7% to $785.8 million; Providence’s No. 5 St. Jude Medical Center in Fullerton increased 12% to $740.2 million; and No. 6 Mission Hospital in Mission Viejo rose 13% to $718.8 million.
Another large system reporting a rebound was MemorialCare Health System, where its Fountain Valley facility rose sales by 10% to $359.3 million and its Laguna Hills center climbed 7.9% to $388.4 million.
Declines
Only five hospitals reported a decline in revenue; a year ago, 17 hospitals saw sales fall.
Orange County’s two children hospitals both reported declines.
The Children’s Hospital of Orange County in Orange said revenue fell 6% to $653.4 million.
The CHOC’s hospital in Mission Viejo fell 17% to $60.7 million.
“For both of our hospitals, the lower revenue was the result of a decrease in provider fee revenues and declining patient volumes due to COVID-19; families postponed elective surgeries and fewer children required hospitalization, compared to adults,” a CHOC spokesperson told the Business Journal.
Spine Leader
Another significant increase was 9.3% to $141.6 million at Hoag Orthopedic Institute (HOI), a specialty hospital with four ambulatory care surgery centers and a network of orthopedic surgeons and providers.
Its outpatient visits soared 67% to 3,719 while its hospital days dropped 21% to 4,773.
HOI last year named a new Chief Medical Officer, Steven Barnett, and a Chief Executive, Kim Mikes.
“The year was dominated with the impacts from the COVID-19 pandemic and our continuing efforts to ensure the safest environment for our patients and staff into 2021,” Mikes and Barnett wrote in the 2021 HOI Annual Outcomes Report.
“Despite the impacts of the COVID-19 pandemic, HOI continues to have the highest volume of joint replacement procedures in the western U.S. and we are the highest volume provider of spine surgeries in Orange County.”
