Franklin, Tenn.-based Community Health Systems CFO Kevin Hammons said the health system is seeing "continued progress from [its] in-sourcing and other initiatives to address medical specialist fees that have surged over the past two years."
Mr. Hammons said medical specialist fees in the first quarter of 2024 were flat compared to the same period last year and down slightly from the fourth quarter of 2023, according to a Seeking Alpha transcript of the health system's April 25 earnings call.
He said CHS has seen strong operational improvements in the 29 ED and hospitalist programs brought in-house since last fall, as well as the two anesthesia programs the system has brought in-house.
"We believe we can continue to scale up these in-sourcing efforts and are well positioned to keep further increases under control despite ongoing pressure, including those in anesthesia," Mr. Hammons said.
CHS CEO Tim Hingtgen said on the call it is "gratifying to see so much progress, especially when you consider that we have been self-operating these programs for less than a year." He said additional opportunities to in-source anesthesia programs are expected to "come online in the months ahead."
The health system reported $231 million in operating income (7.4% margin) in the first quarter, up from $210 million (6.8% margin) during the same period last year.