Vanguard’s net income in the third quarter ended March 31, 2012, was $44 million, a significant increase over the $2.8 million of profit it recorded in the third quarter of last year.
In April, HHS and CMS agreed to a settlement with roughly 2,200 hospitals that were underpaid from the Medicare inpatient prospective payment system from 1999 to 2011. Vanguard’s cut of the settlement added $40.6 million of additional revenue for the quarter, and Vanguard expects to receive the payment around June 30. Vanguard also recorded an additional $9.1 million of Medicare revenue from the revised Supplemental Security Income ratios used for calculating Medicare disproportionate hospital share reimbursements.
Vanguard’s total revenue in the third quarter jumped 12.4 percent to $1.58 billion. In addition to the settlement and SSI adjustment, Vanguard’s revenue was positively impacted by the acquisition of Harlingen, Texas-based Valley Baptist Health System in September 2011. Adjusted EBITDA increased 37.3 percent to $176.6 million.
Same-hospital operating statistics for the quarter ended March 31, 2012, included a 2 percent increase in adjusted discharges, a 2.4 percent increase in outpatient surgeries, a 1.5 percent increase in emergency room visits and a 1 percent decrease in inpatient surgeries.
For the nine months ended March 31, 2012, Vanguard recorded a profit of $38 million compared with a loss of $1 million last year. Total revenue in the nine months topped $4.49 billion, a 41 percent leap from the first nine months of FY 2011.
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