Latest News

IASIS Healthcare logo

FRANKLIN, Tenn. (May 12, 2017) — IASIS Healthcare® LLC (“IASIS” or the “Company”) today announced financial and operating results for the fiscal second quarter and six months ended March 31, 2017.

Key Financial and Operating Results

Consolidated Financial and Operating Results – Second Quarter and Six Months Ended March 31, 2017 and 2016

Consolidated revenue for the second quarter ended March 31, 2017, totaled $843.0 million, an increase of 2.6% compared to $821.3 million in the prior year quarter. The consolidated revenue increase for the second quarter ended March 31, 2017, is comprised of 5.2% growth in premium, service and other revenue in the Company’s managed care operations and 1.0% growth in acute care revenue. Excluding the Company’s Arizona marketplace exchange business from both the current and prior year results, which the Company exited effective January 1, 2017, consolidated revenue increased 4.0% compared to the prior year quarter.

Net earnings from continuing operations for the second quarter ended March 31 2017, totaled $1.3 million, compared to a net loss from continuing operations of $10.4 million in the prior year period. Adjusted EBITDA for the second quarter ended March 31, 2017, totaled $62.1 million, compared to $48.6 million in the prior year quarter.

Consolidated revenue for the six months ended March 31, 2017, totaled $1.68 billion, an increase of 3.6% compared to $1.62 billion in the prior year period. The consolidated revenue increase for the six months ended March 31, 2017, is comprised of 7.0% growth in premium, service and other revenue in the Company’s managed care operations and 1.5% growth in acute care revenue. Excluding the Company’s Arizona marketplace exchange business from both the current and prior year results, consolidated revenue increased 4.0% compared to the prior year period.

Net earnings from continuing operations for the six months ended March 31 2017, totaled $3.5 million, compared to a net loss from continuing operations of $13.7 million in the prior year period. Adjusted EBITDA for the six months ended March 31, 2017, totaled $123.8 million, compared to $106.0 million in the prior year period.

Acute Care Operations – Second Quarter and Six Months Ended March 31, 2017 and 2016

For the second quarter ended March 31, 2017, acute care revenue totaled $504.3 million, an increase of 1.0% compared to the prior year quarter. Admissions increased 1.0% and adjusted admissions increased 1.0%, each compared to the prior year quarter.

For the six months ended March 31, 2017, acute care revenue totaled $1.0 billion, an increase of 1.5% compared to the prior year period. Admissions increased 0.7% and adjusted admissions increased 0.3%, each compared to the prior year period. Net patient revenue per adjusted admission for the six months ended March 31, 2017, increased 1.2% compared to the prior year period.

Managed Care Operations – Second Quarter and Six Months Ended March 31, 2017 and 2016

For the second quarter ended March 31, 2017, premium, service and other revenue in the Company’s managed care operations totaled $338.8 million, an increase of 5.2% compared to the prior year quarter. Excluding the Company’s Arizona marketplace exchange business from both the current and prior year results, premium, service and other revenue increased 8.8% compared to the prior year quarter.

For the six months ended March 31, 2017, premium, service and other revenue in the Company’s managed care operations totaled $679.5 million, an increase of 7.0% compared to the prior year period. Excluding the Company’s Arizona marketplace exchange business from both the current and prior year results, premium, service and other revenue increased 8.1% compared to the prior year period. Total lives served across all managed care division product lines increased 3.1% compared to the prior year, with 676,700 lives served as of March 31, 2017. Excluding lives associated with the Arizona exchange plan in the prior year, which the Company exited on January 1, 2017, total lives served increased 5.2% compared to the prior year.

For the second quarter ended March 31, 2017, excluding the impact of the Arizona exchange plan, the medical loss ratio (“MLR”) was 84.1%, compared to 87.7% in the prior year quarter. For the six months ended March 31, 2017, excluding the impact of the Arizona exchange plan, the MLR was 84.6%, compared to 88.6% in the prior year period.

Cash Flow Analysis

Cash flows provided by operating activities for the first six months of fiscal 2017 totaled $50.2 million, compared to cash flows provided by operating activities of $78.7 million in the prior year. The decline in operating cash flows for the first six months ended March 31, 2017, compared to the same prior year period, is due to the timing of funds related to certain Medicaid supplemental reimbursement programs and an increase in operating expenses associated with the Company’s conversion to a new clinical and revenue cycle system. Additionally, the prior year six months ended March 31, 2016, was positively impacted by the receipt of income tax refunds. Cash flows used in investing activities for the first six months of fiscal 2017 totaled $58.7 million, compared to $69.7 million in the prior year period.

Information Systems Conversion

The Company is currently in the process of converting to new integrated clinical and revenue cycle systems, a project in which the Company expects to make significant investments through the 2019 fiscal year. During the first six months of fiscal 2017, the Company spent $32.1 million in cash associated with its conversion efforts, $8.5 million of which is included in cash flows provided by operating activities, $18.6 million is included in cash flows used in investing activities and $5.0 million is included in cash flows used in financing activities. During the same six months period in the prior year, the Company spent $13.3 million in cash associated with its conversion efforts, $3.3 million of which is included in cash flows provided by operating activities, $8.2 million of which is included in cash flows used in investing activities and $1.8 million of which is included in cash flows used in financing activities.

Conference Call

A listen-only simulcast and 30-day replay of IASIS’ second quarter 2017 conference call will be available on the “Investors” page of the IASIS Healthcare website beginning at 11:00 a.m. Eastern Time on May 12, 2017.

IASIS Healthcare is a healthcare services company that seeks to deliver high-quality, cost-effective healthcare through a broad and differentiated set of capabilities and assets that include acute care hospitals with related patient access points and a diversified managed care risk platform. With total annual revenue of approximately $3.3 billion, IASIS, headquartered in Franklin, Tennessee, owns and operates 17 acute care hospitals, one behavioral hospital and multiple other access points, including 141 physician clinics, multiple outpatient surgical units, imaging centers, and investments in urgent care centers and on-site employer-based clinics. Health Choice, the Company’s managed care risk platform, delivers services to more than 676,700 covered lives through its multiple health plans, accountable care networks and agreements to serve as a management services organization (“MSO”) with third party insurers.

 


 

CareersJoin our team
Careers
stethoscope iconLearn about
Health Choice
IASIS Healthcare hospitalsLearn about our
Hospitals
Mobile AppsDownload our
Mobile App