Ballad CFO Lynn Krutak said the health system faces significant financial challenges but has the discipline and leadership to navigate obstacles ahead.
Thursday, April 18, 2019

The Ballad of Ballad Health

Ballad Health, the result of a merger between Mountain States Health Alliance and Wellmont Health System, deals with several significant financial obstacles. Examples include a payer mix primarily comprised of governmental enrollees, the fourth-lowest wage index in the nation, and declining local population growth.

In a conversation with HealthLeaders though, CFO Lynn Krutak laid out how Ballad is utilizing its partnerships to make the best of its circumstances and how a $308 million spending plan over the next 10 years could actually save the system money. 

Reminder: Our 2019 CFO Exchange held at the American Club in Kohler, Wisconsin from August 7 - 9, is on the horizon! 

If you're the CFO of a health system and interested in attending, follow the link here for an invitation. 
 
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Ballad Health Relies on Partnerships to Excel With Difficult Payer Mix
Ballad CFO Lynn Krutak said the health system faces significant financial challenges but has the discipline and leadership to navigate obstacles ahead.
 
 
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Uber Registers for IPO, Eyes Healthcare Play
  • Following a few weeks after Lyft went public, Uber filed for its long-awaited IPO.
     
  • Healthcare remains part of the ridesharing giant's forward-looking strategy.
     
  • Uber Health, utilized by more than 100 healthcare organizations, is the centerpiece of its healthcare play.
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KPC Health Wins Approval to Buy Verity Health Hospitals
  • KPC Health is adding four Verity Health-owned hospitals to its growing collection of nonprofit hospitals.
     
  • Dr. Kali P. Chaudhuri, chairman of KPC Health, referred to the ruling as an "Important milestone" for the company.
     
  • The court-approved deal now goes before California Attorney General Xavier Becerra, who attempted to block the sale of two Verity Health hospitals in January.
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Navigating the M&A Landscape: Achieving Clinical and Financial Objectives
Evidence of the M&A trend’s resiliency is found throughout our 2019 HealthLeaders Mergers, Acquisitions, and Partnerships Survey. For example, 91% of respondents expect their organizations’ M&A activity to increase (68%) or remain the same (23%) within the next three years. Download the latest HealthLeaders Intelligence Report to learn more!
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4 Topics Revenue Cycle Leaders Are Discussing Now
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Sutter Health, Affiliates to Pay Back $30M for Medicare Advantage Overpayments
  • Affiliates named in the settlement are Sutter East Bay Medical Foundation, Sutter Pacific Medical Foundation, Sutter Gould Medical Foundation, and Sutter Medical Foundation.
     
  • Earlier this month, DOJ filed a complaint against Sutter and Palo Alto Medical Foundation alleging that they violated the False Claims Act by knowingly submitting unsupported diagnosis scores.
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Primary Care Represents Less Than 5% of Medicare Spending
  • Primary care services have long been defined by "higher quality, better outcomes and lower costs," according to the RAND study.
     
  • For narrow definitions of primary care, the lowest percentage of spending came from North Dakota at 1.59% while Hawaii led the way with 3.19%.
     
  • For expansive definitions, the lowest percentage came from the District of Columbia at 2.92% while Iowa led the nation at 4.74%.
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UnitedHealth Beats Estimates With Solid Q1 Earnings
  • Against EPS estimates of $3.60, UnitedHealth posted $3.73 EPS, sending the company's stock up more than 3.50% in early morning trading.
     
  • Overall, the Minnetonka-based insurer posted revenues north of $60 billion.
     
  • Earnings from operations for the quarter were $4.8 billion, a 19% increase year-over-year, thanks to continued growth in the company's UnitedHealthcare and Optum subsidiaries.
 
 

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Final Notes

If you have any tips, story ideas, thoughts, calendar items, press releases, criticisms, corrections, or general advice, send them my way at jobrien@healthleadersmedia.com.

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I will see all of you on April 25, for our last newsletter of the month!

That's all, folks.

Jack O'Brien
Finance Editor