Rising Costs Blamed For Kaiser Permanente’s $4.47 Billion Net Loss
Modern Healthcare says the net loss for 2022 is merely the latest sign that health systems are struggling amid rising costs. Separately, Mass General Brigham recorded a nearly $1.5 million Q1 operating loss, and insurtech Oscar Health's net loss grew in 2022. But other providers are building new hospitals.
Modern Healthcare:
Kaiser Permanente Posted $4.47B Net Loss In 2022 As Costs Rose
Kaiser Permanente is the latest health system showing signs of struggle amid rising costs. Kaiser, an Oakland, California-based integrated nonprofit, on Friday reported a $4.47 billion net loss in 2022, compared with a $8.08 billion gain in 2021. (Hudson, 2/10)
Modern Healthcare:
Mass General Brigham Records Nearly $1.5M In Q1 Operating Loss
Mass General Brigham continues to struggle with cost increases, staffing problems and capacity issues. The system on Friday reported net income of $480 million in its first quarter ended Dec. 31, a dramatic improvement from the $104.96 million reported in the year-ago period. However, that jump was largely supported by nonoperating factors, including more than $400 million in investment-related gains. Revenue increased 8.4% to $4.46 billion. (Hudson, 2/10)
Modern Healthcare:
Oscar Health's Net Loss Grew In 2022
The insurtech's medical loss ratio improved from 88.9% in 2021 to 85.3% last year and its administrative expense ratio declined from 21.8% to 20.6%, the company reported Thursday. Oscar Health recorded a $226.6 million net loss during the fourth quarter, which beat analyst expectations of $261.3 million in net losses. (Turner, 2/10)
In related news about hospital costs —
Crain's Detroit Business:
Why New Hospitals Are Being Built During Tough Financial Times
The rise of medically complex patients is presenting an opportunity for Michigan health systems willing to bet on the future of hospitals even as they struggle through tough financial times now. Henry Ford Health announced this week a planned $2.2 billion investment in the city of Detroit, including a new hospital tower and a research and innovation center with Michigan State University. (Walsh, 2/10)
KHN:
Doctors Are Disappearing From Emergency Rooms As Hospitals Look To Cut Costs
Pregnant and scared, Natasha Valle went to a Tennova Healthcare hospital in Clarksville, Tennessee, in January 2021 because she was bleeding. She didn’t know much about miscarriage, but this seemed like one. In the emergency room, she was examined then sent home, she said. She went back when her cramping became excruciating. Then home again. It ultimately took three trips to the ER on three consecutive days, generating three separate bills, before she saw a doctor who looked at her bloodwork and confirmed her fears. (Kelman and Farmer, 2/13)
Stat:
Patients Still Face Surprise Ambulance Bills. There's No Fix In Sight
One night in November 2021, 11 weeks into her pregnancy, Carolyn Provine started bleeding — a lot. When she passed out, her wife and mother-in-law called an ambulance and drove 21 miles to the hospital for an emergency surgery. But the hemorrhaging, and miscarriage, no longer were Provine’s only concerns. “My first thought was, ‘Wait, is there some way for me not to take an ambulance?’” said Provine, 26, a reading specialist in Vermont. (Herman, 2/13)
In other health care industry news —
North Carolina Health News:
Not Enough Support Staff For People With Disabilities
Matt Potter is 36 years old and a disability rights activist. He has cerebral palsy and uses an electric wheelchair. Right now, his parents are his primary caretakers. They help him get to and from the bathroom, move in and out of bed, change his clothes and so on — things he describes as “intense, but rather simple personal care needs.” But they’re getting older. (Donnelly-DeRoven, 2/13)
The Boston Globe:
A 15-Year-Old Stayed In A Hospital For 40 Days. The Reason? The State Child Welfare Agency Had No Place To Put Him
For 40 days last fall, James’s entire life fit within the four walls of an emergency department room in Leominster. The 15-year-old lived in a windowless room, ate hospital meals, wore thin papery scrubs, and was allowed to leave only to use the bathroom or shower down the hall. (Koh, 2/11)
Chicago Tribune:
Shortage Of In-Home Nurses Leaves Kids Waiting In Hospital Beds. ‘The Entire System Is Feeling The Pressure.’
Ricardo Ruiz could have left the hospital two months ago. Instead, the toddler waited while his family searched for a nurse who could help care for him at home. Ricky, as his parents call him, was born prematurely at 27 weeks with underdeveloped lungs. The 15-month-old has a tracheostomy tube in his neck connected to a ventilator that helps him breathe. He needs 24-hour-a-day, specialized care, which is why his family hoped to find an in-home nurse. (Schencker, 2/12)
KHN:
Montana’s Tax-Exempt Hospitals Oppose Increased Oversight By State Officials
Nonprofit hospitals are fighting Montana’s attempt to boost oversight of the ways they claim they provide benefits to their communities in exchange for millions of dollars in tax breaks. It’s the latest clash in a national struggle between policymakers and the industry over whether hospitals’ charitable giving is enough to justify their tax-exempt status. (Houghton, 2/13)
