Albuquerque, N.M.-based Presbyterian Healthcare Services has reported a 6.9 percent operating margin for the three months ended June 30, up from a 4 percent margin during the second quarter of 2013.
Total operating income was $42.7 million for the second quarter of this year, up more than 100 percent from $21.3 million during the second quarter of 2013. PHS also reported an $84.6 million excess of revenues over expenses for the three months ended June 30, up from an $11 million surplus during the second quarter of 2013.
Total operating revenue rose from $533.6 million in 2013 to $621.6 million during this year's second quarter, mostly driven by higher net premium revenue from Presbyterian's health plan. Net premium revenue increased by 21.5 percent during the second quarter to $415 million, primarily because of Centennial Care, the expanded Medicaid managed care program implemented by New Mexico in January. Centennial expanded the state's Medicaid program to include long-term care and behavioral health services, which led to a 10.1 percent increase in PHS Medicaid covered lives.
Additionally, for the quarter ended June 30, total inpatient discharges increased by 2.9 percent, total inpatient days went up by 8.4 percent and total outpatient visits rose 5.3 percent. The transition of services for certain health plan members to PHS from a contracted hospital drove the volume increase.
For the six months ended June 30, PHS reported a 5.3 percent operating margin and $64.9 million in total operating income, compared with a 3 percent operating margin and $31.4 million in operating income during the first half of 2013. Total operating revenue for the first six months of 2014 rose 17 percent year-over-year to $1.23 billion, driven by a 25.6 percent increase in net premium revenue under Centennial.
During the first half of 2014, total inpatient discharges went up by 1.1 percent year-over-year, total inpatient days increased by 7.8 percent and outpatient visits went up by 5.2 percent.