Morning Briefing
Summaries of health policy coverage from major news organizations
Community Health Will Spin Off 38 Hospitals In Rural And Suburban Communities
As more states opt to expand Medicaid under the Affordable Care Act, a new investor-owned hospital company is poised to tap an emerging market of Americans in rural areas and smaller communities gaining health coverage. Community Health Systems (CYH) said Monday it will spin off to its shareholders a group of 38 smaller hospitals, primarily in rural and suburban markets with populations of 鈥渘o more than 50,000.鈥 In 84 percent of these markets, Community said the hospital is the 鈥渟ole provider of acute hospital services.鈥 Only 14 of these hospitals are located in states that have not expanded Medicaid coverage for poor Americans such as Alabama, Georgia, Texas, Tennessee and Wyoming. (Japsen, 8/4)
Community Health Systems Inc, the No. 2 U.S. publicly traded hospital operator, said on Monday it plans to spin off 38 hospitals and a consulting business into a separate company so that it can focus on larger markets. Quorum Health Corp, the new publicly traded company, will include hospitals primarily in cities and counties with populations under 50,000, Community Health said. (Kelly, 8/3)
Community Health Systems Inc. raised its earnings guidance for the year as its second-quarter profit more than doubled thanks to its acquisition of Health Management Associates Inc. Separately, the hospital operator also announced plans to spin off a group of 38 hospitals and Quorum Health Resources LLC, its hospital management and consulting business. (Jaramillo, 8/3)
In other marketplace news, Aetna topped profit estimates while聽Tenet Healthcare reported Q2 losses -
Aetna Inc., the No. 3 U.S. health insurer by enrollment, raised its full-year earnings forecast after reporting profit that topped analysts鈥 estimates as it added more members in government insurance programs. Aetna agreed last month to buy Humana Inc. to expand in Medicare, while Anthem Inc. announced a deal for Cigna Corp. The health-insurance industry is consolidating as it absorbs new customers and contends with added regulation from President Barack Obama鈥檚 Patient Protection and Affordable Care Act. (Tracer, 8/3)
Tenet Healthcare Corp. said its second-quarter loss widened as the hospital operator was hit by $136 million in write-downs, restructuring charges, acquisition-related costs and other one-time items. However, excluding such items, per-share earnings beat expectations, while revenue topped Wall Street views. The company鈥檚 guidance for the current quarter also was above analysts鈥 predictions. (Stynes, 8/3)