Community Health sees slight boost from U.S. health law in 2014

Mon Jan 6, 2014 7:17pm EST

Related Topics

(Reuters) - Community Health Systems Inc, which awaits a shareholder vote this week on its proposed takeover of smaller hospital operator Health Management Associates Inc, said it expects the new U.S. healthcare law to provide a slight boost to 2014 earnings.

Community Health, the No. 2 U.S. hospital company behind HCA Holdings Inc, also said it was negotiating an agreement with the U.S. Office of the Inspector General to settle a probe related to allegations of false claims to the federal Medicare program for the elderly and disabled. Such deals, called corporate integrity agreements, typically last five years and involve annual reviews by an independent organization.

Community Health said it was setting aside $101.5 million in 2013 to settle those claims and undisclosed issues at a company hospital in Laredo, Texas.

For 2013, it said it expects its adjusted earnings before interest, tax, depreciation and amortization to range from $1.825 billion to $1.85 billion, excluding expenses for the settlements and pending purchase of Health Management. It forecast operating revenue of $12.975 billion to $13.0 billion.

Results in 2013 reflect a greater-than-expected deterioration in patient volumes at the company's hospitals, including a 6.7 percent decrease in admissions for the year, Community Health said.

The company, which said it was providing 2014 projections to reflect the Health Management acquisition as if it occurred on January 1, forecast adjusted EBITDA of $2.925 billion to $3.2 billion for the year ahead. It sees 2014 operating revenue, less a provision for bad debts, of $19.7 billion to $21.2 billion.

The 2014 outlook includes a benefit to adjusted EBITDA from healthcare reform of between 0.5 percent and 0.8 percent of net operating revenue.

Community Health said it anticipates the Health Management transaction, valued at $3.6 billion plus a contingent value right of up to $1 per share, to close by the end of this month.

Health Management shareholders are expected to vote on Wednesday on the pending merger. Health Management's board in November backed the takeover after a review period spurred by activist investor Glenview Capital.

(Reporting by Susan Kelly in Chicago; Editing by Bernard Orr and Lisa Shumaker)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
SJmithB wrote:
I think this is all to implant folks with a biochip that causes adverse health effects. I know, the Virginia State Police implanted me with a biochip that enables Uberveillance – thought monitoring as well as a gps and video camera. They can hear what your ears hear, see what you see and know what you are thinking. See A Note on Uberveillance by MG and Katina Michael. Law enforcement believes this is the only way we can be safe – to allow them into every intimate moment of our lives and interupt our prayers. See Safeguards in a World of Ambient Intelligence by Springer page 9. The military’s assessment is that it causes early onset dementia, pancreatic dysplasia, mineral aphesia, brain tumors, organ damage, and other cancers. See the BioInitiative Report 2012. It is a known human carcinogen. It allows them to use “psyops” to communicate directly with your brain. See the Audio Spotlight by Holosonics. They use LRAD aka active denial technology to torture and even murder people. See Terrorism and Mental Health by Amin Gadit. He discusses the weapon very well. I don’t think we need Medicaid Expansion to destroy our Constitutional right to privacy and freedom. Let law enforcement go to Iraq if they enjoy the torture so much. They have been torturing me for six years now!

Jan 09, 2014 1:38pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.