Capella profits jump with $5.1M CMS settlement
Another Tennessee hospital operator reported millions of dollars in additional Medicare revenue from the industry-wide settlement with the Centers for Medicare & Medicaid Services. Capella Healthcare received $5.1 million the Medicare Rural Floor settlement, the hospital chain announced Friday.
The for-profit hospital operator also received $13.6 million from a settlement involving Oklahoma's hospital provider fee.
Thanks in part to the CMS payouts, Capella saw its total revenue jump 15.5 percent to $196.9 million for the first three months of 2012, compared to the first quarter of 2011. Adjusted earnings totaled $31.8 million, up from to $23.1 million in last year's first quarter. Capella also reported a 6.3 percent bump in admissions, compared to the year before.
Capella joins Vanguard Health System, LifePoint Hospitals, HCA Holdings and Community Health Systems among the 2,200 hospitals to settle underpayments with CMS over litigation in 1999 and resolved last month.
Meanwhile, Capella's proposed purchase of St. Joseph's Mercy Health System has prompted a board member for Arkansas-based Mercy to resign, Arkansas Business reported. The former board member wanted another faith-based, nonprofit hospital to replace St. Joseph's.
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