The 21-hospital system operates in Tennessee under a certificate of public advantage agreement and in Virginia under a cooperating agreement. Both agreements oblige Ballad Health to invest in certain initiatives to ensure affordable access to healthcare.
Tennessee Attorney General Jonathan Skrmetti has asked for a full monitoring of operations at the system’s facilities in Northeastern Tennessee after residents there complained about such healthcare provision.
“It is clear that Ballad Health’s efforts through its ACO, and through value-based contracting, and in partnership with private physician groups aligning with the value-based model, have significantly decreased low acuity admissions, reduced risk of harm to Medicare beneficiaries, and reduced the cost of health care,” Ballad said in a statement. “This success comports with Tennessee and Virginia law which requires under the COPA and CA that Ballad Health demonstrate ‘improvements in the utilization of hospital resources and equipment,’ demonstrate ‘population health improvement of the region,’ and also which mandates ‘gains in cost containment and cost-efficiency’ and ‘avoidance of duplication of hospital resources.’
Ballad Health reported an operating loss of $18.6 million on revenue of $586.7 million for the quarter ending Sept. 30. Its overall loss totaled $55.5 million.
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