Employee Benefit News for School, City and County Employers

Hospital operators see revenue increases with more ACA patients

Written by Valerie Ortiz | Jul 29, 2014 2:50:44 PM

With the second quarter earnings figures coming in for major hospital operators, figures show that earnings were up for two companies that saw a growth in patients from the Affordable Care Act (ACA), the Wall Street Journal reported.

LifePoint Hospitals Inc. reported profit gains of $39.1 million for the second quarter, which was a 44 percent increase from Q2 2013, the source reported. Universal Health Services Inc. reported a 10 percent revenue boost in Q2 2014 from a year prior.

With the new federal healthcare law in effect, nearly 26 million people are expected to get coverage in the next couple of years, the source reported. Hospital Corporation of America (HCA) also reported growth in earnings in Q1 2014, the Tennessean reported.

The total revenue for HCA increased by 4.6 percent and equaled $6.8 billion, which was slightly up by $3 million in Q1 2014 from Q1 2013, the source reported.

"Although reform is still unfolding and a small percentage of our business, we are encouraged by these earlier trends," said Bill Rutherford, chief financial officer for HCA, according to the source.