34 on List of Largest Hospitals Report Losing Money

by Mark Friedman  on Monday, Oct. 7, 2013 12:00 am  

For the first time on Arkansas Business’ list of largest hospitals and medical centers, companies were ranked by net patient revenue instead of gross patient revenue.

The change in the list mirrors the accounting changes in the health care industry. The changes are designed to make it easier for people to determine how much revenue hospitals received. The much higher gross revenue figure included inflated patient charges that a hospital never expected to receive from private or public insurance payers.

Mark McGinnis, the chief financial officer at St. Vincent Health System of Little Rock, told Arkansas Business last month that most hospital systems have moved to the new accounting of revenue and now the change isn’t a big deal to hospital CFOs.

He said the change “makes the financial statement more readable to the typical reader.”

The information for the Arkansas Business’ list comes from the hospitals, tax returns and annual Medicare costs reports, which are unaudited.

Get the List: Click here to get the list of Arkansas' largest hospitals by revenue.

The $1.8 Billion Corridor

Four of the five top spots on this year’s list were controlled by hospitals in Little Rock that were just off of Interstate 630 and generated $1.775 billion in patient revenue.

The hospital with the highest net patient revenue was the UAMS Medical Center, which had net patient revenue of $607.5 million for its fiscal year that ended June 30, 2012.

Just down Interstate 630 from UAMS is the No. 2 hospital, Baptist Health Medical Center-Little Rock, which reported net patient revenue of $431.9 million for 2012.

Arkansas Children’s Hospital landed in the No. 3 position with revenue of $423.45 million for its fiscal year that ended June 30, 2012.

 

 

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