Modern Healthcare – August 12, 2019

August 12, 2019 | Modern Healthcare 9

Finance

Numbers are for the quarter ended June 30 compared
with the same period last year.

Cigna Corp. | Bloomfield, Conn.

THE NUMBERS

Amount Change

Revenue $38.8 billion 238.1%

Operating $36.7 billion 255.2%
expenses/costs

Net income $1.4 billion 74.5%

Membership 17 million 1.2%

Medical-loss 81.6% +2.6 percentage points
ratio

TAKEAWAY Cigna Corp.’s outsized growth in revenue
and net income in the three months ended June 30
was primarily driven by its acquisition of pharmacy
benefit manager Express Scripts, a deal completed in
December 2018. But Cigna’s health insurance segment
also contributed to the revenue growth, as the insurer
enrolled more commercial insurance members and
increased premiums to cover costs.

Community Health Systems | Franklin, Tenn.

THE NUMBERS

Amount Change

Revenue $3.3 billion -7.3%

Expenses $3.2 billion -9.5%

Operating profit $111 million 200%

Profit margin -5.1% -2 percentage points

Admissions 139,400 -11.5%

TAKEAWAY Community Health Systems widened its
net loss to shareholders in the second quarter of 2019.
Admissions fell 11.5% in the quarter year-over-year as
it continues to complete hospital divestitures, including
seven sales in the six months ended June 30. On a
same-facility basis, admissions were up 2.3% in the
same period.

CVS Health | Woonsocket, R.I.

THE NUMBERS

Amount Change

Revenue $63.4 billion 35.2%

Operating $60.1 billion 24.4%

expenses/costs

Net income $1.9 billion +$4.5 billion

Membership 22.8 million N/A

Medical-loss 84% N/A

ratio

TAKEAWAY CVS Health reported increases in revenue

and net income in the second quarter of 2019, driven

by its acquisition of health insurer Aetna that closed

in late November. An increase in the pharmacy claims

and brand-name drug price inflation also helped

drive the top line. The Aetna insurance business grew

Medicare and Medicaid membership while commercial

membership decreased compared with the first quarter.

Note: The change in membership and medical-loss ratio

were unavailable due to the Aetna acquisition.

Tenet Healthcare Corp. | Dallas

THE NUMBERS

Amount Change

Revenue $4.6 billion 1.2%

Expenses $4.2 billion 1.6%

Operating profit $388 million -4.4%

Profit margin 0.37% -0.21 percentage points

Admissions 169,352 0.5%

TAKEAWAY Tenet Healthcare Corp.’s net income fell

35% in the second quarter of 2019 year-over-year, to

$17 million. The company recently announced plans

to spin off its revenue-cycle subsidiary, Conifer Health

Solutions, after being unable to find a suitable purchase

offer. Conifer’s revenue from third-party customers

declined 13.6% in the quarter year-over-year.

Losses grow at CHS;

Aetna boosts CVS’

bottom line