Vanguard awarded $40.6M in underpayments from CMS settlement

Add Vanguard Health System to the list of Medicare Rural Floor settlement recipients, as the Nashville, Tenn., system saw an additional $40.6 million of Medicare revenue, thanks to payouts from the Centers for Medicare & Medicaid Services, Vanguard announced yesterday.

LifePoint Hospitals, HCA Holdings and Community Health Systems accompany Vanguard in the industry-wide settlement with CMS over litigation in 1999, regarding payment rates for rural hospitals. They all expect to receive proceeds from the settlement by June 30.

Largely due to the Medicare Rural Floor settlement, Vanguard's total revenues jumped 12.4 percent to $174 million for the third quarter of fiscal 2012, while adjusted earnings grew 37.3 percent to $176.6 million, compared to last year's third quarter.

For the third quarter of FY 2012, the health system also reported a 13.7 percent increase in inpatient surgeries and an 11.8 percent jump in outpatient surgeries. Emergency room visits grew 9 percent.

Vanguard's revenue also got a boost from its joint venture with Valley Baptist Health System, which finalized last September after almost a year of initial talks with the faith-based system.

To learn more:
- read the earnings announcement
- here's the acquisition announcement