This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Vanguard Health Systems Reports Fourth Quarter And Year End Fiscal 2013 Results

Our forward-looking statements speak only as of the date made. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to rely on such forward-looking statements when evaluating the information contained in this press release. In light of significant uncertainties inherent in the forward-looking statements included in this press release, you should not regard the inclusion of such information as a representation by us that the objectives and plans anticipated by the forward-looking statements will occur or be achieved or, if any of them do, what impact they will have on our financial condition, results of operations or cash flows.

We use our company website to provide important information to investors about the company, including the posting of important announcements regarding financial performance and corporate developments.

VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidated Income Statements (Unaudited)
(In millions, except share and per share amounts)
 
Quarter ended June 30,
2012   2013
Patient service revenues $ 1,425.9   98.0 % $ 1,517.0   100.0 %
Less: Provision for doubtful accounts (137.9 ) (9.5 ) (184.8 ) (12.2 )
Patient service revenues, net 1,288.0 88.5 1,332.2 87.8
Premium revenues 166.8   11.5   185.3   12.2  
Total revenues 1,454.8 100.0 1,517.5 100.0
Costs and expenses:
Salaries and benefits (includes stock compensation) 657.7 45.2 667.0 44.0
Health plan claims expense 120.3 8.3 156.0 10.3
Supplies 234.6 16.1 229.3 15.1
Purchased services 142.3 9.8 160.8 10.6
Rents and leases 19.3 1.3 19.0 1.3
Other operating expenses 143.9 9.9 151.6 10.0
Medicare and Medicaid EHR incentives (1.4 ) (0.1 ) (6.8 ) (0.4 )
Depreciation and amortization 67.0 4.6 63.0 4.2
Interest, net 50.4 3.5 47.7 3.1
Acquisition related expenses 0.2 7.9 0.5
Impairment and restructuring charges 5.2 0.3
Debt extinguishment costs 0.8 0.1
Loss (gain) on disposal of assets 1.2 0.1 (14.6 ) (1.0 )
Other (0.9 ) (0.1 ) (3.8 ) (0.3 )
Income from continuing operations before income taxes 20.2 1.4 34.4 2.3
Income tax expense (1.8 ) (0.1 ) (16.3 ) (1.1 )
Net income 18.4 1.3 18.1 1.2
Net loss (income) attributable to non-controlling interests 0.9   0.1   (3.6 ) (0.2 )

Net income attributable to Vanguard Health Systems, Inc. stockholders

$ 19.3   1.3 % $ 14.5   1.0 %
 
Earnings per share attributable to Vanguard Health Systems, Inc. stockholders
Basic earnings per share $ 0.25   $ 0.19  
Diluted earnings per share $ 0.24   $ 0.18  
 
Weighted average shares outstanding (in thousands):
Basic 75,459   77,866  
Diluted 79,148   80,209  
 
VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidated Income Statements (Unaudited)
(In millions, except share and per share amounts)
 
Year ended June 30,
2012   2013
Patient service revenues $ 5,731.0   96.3 % $ 5,929.6   98.8 %
Less: Provision for doubtful accounts (539.4 ) (9.1 ) (667.3 ) (11.1 )
Patient service revenues, net 5,191.6 87.3 5,262.3 87.7
Premium revenues 757.4   12.7   737.1   12.3  
Total revenues 5,949.0 100.0 5,999.4 100.0
Costs and expenses:
Salaries and benefits (includes stock compensation) 2,746.9 46.2 2,740.6 45.7
Health plan claims expense 578.9 9.7 577.4 9.6
Supplies 911.6 15.3 917.0 15.3
Purchased services 547.3 9.2 611.8 10.2
Rents and leases 75.0 1.3 76.2 1.3
Other operating expenses 551.0 9.3 565.3 9.4
Medicare and Medicaid EHR incentives (28.2 ) (0.5 ) (38.0 ) (0.6 )
Depreciation and amortization 258.3 4.3 257.1 4.3
Interest, net 182.8 3.1 197.0 3.3
Acquisition related expenses 14.0 0.2 8.1 0.1
Impairment and restructuring charges (0.1 ) 5.2 0.1
Debt extinguishment costs 38.9 0.7 2.1
Loss (gain) on disposal of assets 0.6 (13.3 ) (0.2 )
Other (6.6 ) (0.1 ) (16.9 ) (0.3 )
Income from continuing operations before income taxes 78.6 1.3 109.8 1.8
Income tax expense (22.2 ) (0.4 ) (40.8 ) (0.7 )
Income from continuing operations 56.4 0.9 69.0 1.2
Income (loss) from discontinued operations, net of taxes (0.5 )   0.1    
Net income 55.9 0.9 69.1 1.2
Net loss (income) attributable to non-controlling interests 1.4     (7.2 ) 0.1  

Net income attributable to Vanguard Health Systems, Inc. stockholders

 

$ 57.3   1.0 % $ 61.9   1.0 %
 
Earnings per share attributable to Vanguard Health Systems, Inc. stockholders
Basic earnings per share $ 0.75   $ 0.78  
Diluted earnings per share $ 0.71   $ 0.75  
 
Weighted average shares outstanding (in thousands):
Basic 75,255   77,146  
Diluted 78,873   79,679  
 
 
VANGUARD HEALTH SYSTEMS, INC.
Supplemental Financial Information (Unaudited)
Reconciliation of Adjusted EBITDA to Net Income

Attributable to Vanguard Health Systems, Inc. Stockholders

(In millions)
     
Quarter ended Year ended
June 30, June 30,
2012 2013 2012 2013

Net income attributable to Vanguard Health Systems, Inc. stockholders

$ 19.3 $ 14.5 $ 57.3 $ 61.9
Interest, net 50.4 47.7 182.8 197.0
Income tax expense 1.8 16.3 22.2 40.8
Depreciation and amortization 67.0 63.0 258.3 257.1
Non-controlling interests (0.9 ) 3.6 (1.4 ) 7.2
Loss (gain) on disposal of assets 1.2 (14.6 ) 0.6 (13.3 )
Equity method loss (income) 0.3 0.1 (1.5 ) (1.8 )
Stock compensation 2.7 0.9 9.2 6.4
Realized losses on investments 0.3
Acquisition related expenses 0.2 7.9 14.0 8.1
Debt extinguishment costs 0.8 38.9 2.1
Impairment and restructuring charges 5.2 (0.1 ) 5.2
Pension credits (1.2 ) (3.9 ) (5.1 ) (15.4 )
Discontinued operations, net of taxes     0.5   (0.1 )
Adjusted EBITDA (1) $ 140.8   $ 141.5   $ 575.7   $ 555.5  
     

(1)

Adjusted EBITDA is defined as income before interest expense (net of interest income), income taxes, depreciation and amortization, non-controlling interests, gain or loss on disposal of assets, equity method income or loss, stock compensation, realized gains or losses on investments, acquisition related expenses, debt extinguishment costs, impairment and restructuring charges, pension expense (credits) and discontinued operations, net of taxes. Adjusted EBITDA is not intended as a substitute for net income attributable to Vanguard Health Systems, Inc. stockholders, operating cash flows or other cash flow data determined in accordance with accounting principles generally accepted in the United States. Due to varying methods of calculation, Adjusted EBITDA as presented may not be comparable to similarly titled measures of other companies.

 
 
VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
   
June 30, June 30,
ASSETS 2012 2013
Current assets:
Cash and cash equivalents $ 455.5 $ 624.0
Restricted cash 2.4 6.5
Accounts receivable, net of allowance for doubtful accounts of $366.5 and $408.1, respectively 702.1 636.7
Inventories 97.0 101.7
Deferred tax assets 89.6 67.7
Prepaid expenses and other current assets 236.4   205.2  
Total current assets 1,583.0 1,641.8
Property, plant and equipment, net of accumulated depreciation 2,110.1 2,325.0
Goodwill 768.4 789.9
Intangible assets, net of accumulated amortization 89.0 80.6
Deferred tax assets, noncurrent 71.2 46.6
Investments in securities 51.8 59.1
Escrowed cash for capital commitments 20.3
Other assets 94.3   99.6  
Total assets $ 4,788.1   $ 5,042.6  
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 383.6 $ 394.9
Accrued salaries and benefits 226.0 211.7
Accrued health plan claims and settlements 74.8 72.6
Accrued interest 73.2 73.6
Other accrued expenses and current liabilities 219.9 227.9
Current maturities of long-term debt 11.2   16.9  

Total current liabilities

988.7 997.6
Professional and general liability and workers compensation reserves 304.8 293.0
Unfunded pension liability 269.9 187.7
Other liabilities 174.7 117.2
Long-term debt, less current maturities 2,695.4 2,979.3
Commitments and contingencies
Redeemable non-controlling interests 53.1 61.8
Equity:
Vanguard Health Systems, Inc. stockholders' equity:
Common stock 0.8 0.8
Additional paid-in capital 403.3 399.0
Accumulated other comprehensive loss (48.4 ) (8.1 )
Retained deficit (60.6 ) 1.3  
Total Vanguard Health Systems, Inc. stockholders' equity 295.1 393.0
Non-controlling interests 6.4   13.0  
Total equity 301.5   406.0  
Total liabilities and equity $ 4,788.1   $ 5,042.6  
 
 
VANGUARD HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
  Year ended
June 30,
Operating activities: 2012   2013
Net income $ 55.9 $ 69.1
Adjustments to reconcile net income to net cash provided by operating activities:
Loss (income) from discontinued operations 0.5 (0.1 )
Depreciation and amortization 258.3 257.1
Amortization of loan costs and accretion of principal on notes 14.2 13.2
Acquisition related expenses 14.0 8.1
Stock compensation 9.2 6.4
Deferred income taxes 15.5 22.5
Loss (gain) on disposal of assets 0.6 (13.3 )
Debt extinguishment costs 38.9 2.1
Other (0.2 ) 0.4
Changes in operating assets and liabilities, net of the impact of acquisitions (292.8 ) (64.8 )
Net cash provided by operating activities - continuing operations 114.1 300.7
Net cash provided by (used in) operating activities - discontinued operations (0.5 ) 0.1  
Net cash provided by operating activities 113.6 300.8
 
Investing activities:
Acquisitions and related expenses, net of cash acquired (212.9 ) (15.4 )
Capital expenditures (293.3 ) (420.5 )
Proceeds from asset disposal 2.8 17.1
Proceeds from sales of investments in securities 85.3 76.2
Purchases of investments in securities (73.5 ) (79.1 )
Net reimbursements from (deposits to) restricted cash and escrow fund (20.5 ) 17.0
Other investing activities (1.1 ) (1.4 )
Net cash used in investing activities (513.2 ) (406.1 )
 
Financing activities:
Payments of long-term debt and capital lease obligations (553.1 ) (22.0 )
Proceeds from debt borrowings 452.2 300.0
Payments of debt issuance costs (10.5 ) (2.8 )
Proceeds from the issuance of common stock 67.5
Payments of IPO related costs (6.9 )
Payments of tender premiums on note redemption (27.6 ) (0.5 )
Other financing activities (3.1 ) (0.9 )
Net cash provided by (used in) financing activities (81.5 ) 273.8  
Net increase (decrease) in cash and cash equivalents (481.1 ) 168.5
Cash and cash equivalents, beginning of period 936.6   455.5  
Cash and cash equivalents, end of period $ 455.5   $ 624.0  
 
Supplemental cash flow information:
Net cash paid for interest $ 162.4   $ 184.1  
Net cash paid for income taxes $ 4.5   $ 22.2  
 
 
VANGUARD HEALTH SYSTEMS, INC.
Segment Information (Unaudited)
(In millions)
           
Quarter ended June 30, 2012
Acute
Care % of Health % of
Services Revenues Plans Revenues Eliminations Consolidated
Patient service revenues, net (1) $ 1,298.3 100.0 % $ % $ (10.3 ) $ 1,288.0
Premium revenues     166.8   100.0     166.8  
Total revenues 1,298.3 100.0 166.8 100.0 (10.3 ) 1,454.8
 

Salaries and benefits(excludes stock compensation)

645.1 49.7 9.9 5.9 655.0
Health plan claims expense (1) 130.6 78.3 (10.3 ) 120.3
Supplies 234.5 18.1 0.1 0.1 234.6
Other operating expenses 294.4 22.7 11.1 6.7 305.5
Medicare and Medicaid EHR incentives (1.4 ) (0.1 )       (1.4 )
Segment EBITDA (2) 125.7 9.7 15.1 9.1 140.8
Less:
Interest, net 50.9 3.9 (0.5 ) (0.3 ) 50.4
Depreciation and amortization 66.0 5.1 1.0 0.6 67.0
Equity method loss 0.3 0.3
Stock compensation 2.7 0.2 2.7
Loss on disposal of assets 1.2 0.1 1.2
Acquisition related expenses 0.2 0.2
Pension credits (1.2 ) (0.1 )       (1.2 )

Income from continuing operations before income taxes

$ 5.6   0.5 % $ 14.6   8.8 % $   $ 20.2  
     

(1)

We eliminate in consolidation those patient service revenues earned by our health care facilities attributable to services provided to enrollees in our owned health plans and eliminate the corresponding medical claims expenses incurred by our health plans for those services.

 

(2)

Segment EBITDA is defined as income from continuing operations before income taxes less interest expense (net of interest income), depreciation and amortization, equity method income or loss, stock compensation, gain or loss on disposal of assets, realized gains or losses on investments, acquisition related expenses, debt extinguishment costs, impairment and restructuring charges and pension expense (credits). Management uses Segment EBITDA to measure the performance of our segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA eliminates the uneven effect of non-cash depreciation of tangible assets and amortization of intangible assets, much of which results from acquisitions accounted for under the purchase method of accounting. Segment EBITDA also eliminates the effects of changes in interest rates, which management believes relate to general trends in global capital markets, but are not necessarily indicative of the operating performance of our segments. Management believes that Segment EBITDA provides useful information to investors, lenders, financial analysts and rating agencies about the financial performance of our segments. Additionally, management believes that investors and lenders view Segment EBITDA as an important factor in making investment decisions concerning us. Segment EBITDA is not a substitute for net income, operating cash flows or other cash flow statement data determined in accordance with accounting principles generally accepted in the United States. Segment EBITDA, as presented, may not be comparable to similar measures of other companies.

 
 
VANGUARD HEALTH SYSTEMS, INC.
Segment Information (Unaudited) (continued)
(In millions)
           
Quarter ended June 30, 2013
Acute
Care % of Health % of
Services Revenues Plans Revenues Eliminations Consolidated
Patient service revenues, net (1) $ 1,343.2 100.0 % $ % $ (11.0 ) $ 1,332.2
Premium revenues     185.3   100.0     185.3  
Total revenues 1,343.2 100.0 185.3 100.0 (11.0 ) 1,517.5
 

Salaries and benefits

(excludes stock compensation)

657.2 48.9 8.9 4.8 666.1
Health plan claims expense (1) 167.0 90.1 (11.0 ) 156.0
Supplies 229.3 17.1 229.3
Other operating expenses 321.2 23.9 10.2 5.5 331.4
Medicare and Medicaid EHR incentives (6.8 ) (0.5 )       (6.8 )
Segment EBITDA (2) 142.3 10.6 (0.8 ) (0.4 ) 141.5
Less:
Interest, net 46.7 3.5 1.0 0.5 47.7
Depreciation and amortization 61.9 4.6 1.1 0.6 63.0
Equity method loss 0.1 0.1
Stock compensation 0.9 0.1 0.9
Gain on disposal of assets (14.6 ) (1.1 ) (14.6 )
Acquisition related expenses 7.9 0.6 7.9
Debt extinguishment costs 0.8 0.1 0.8
Impairment and restructuring charges 5.2 0.4 5.2
Pension credits (3.9 ) (0.3 )       (3.9 )

Income (loss) from continuing operations before income taxes

$ 37.3   2.8 % $ (2.9 ) (1.5 )% $   $ 34.4  
     

(1)

We eliminate in consolidation those patient service revenues earned by our health care facilities attributable to services provided to enrollees in our owned health plans and eliminate the corresponding medical claims expenses incurred by our health plans for those services.

 

(2)

Segment EBITDA is defined as income from continuing operations before income taxes less interest expense (net of interest income), depreciation and amortization, equity method income or loss, stock compensation, gain or loss on disposal of assets, realized gains or losses on investments, acquisition related expenses, debt extinguishment costs, impairment and restructuring charges and pension expense (credits). Management uses Segment EBITDA to measure the performance of our segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA eliminates the uneven effect of non-cash depreciation of tangible assets and amortization of intangible assets, much of which results from acquisitions accounted for under the purchase method of accounting. Segment EBITDA also eliminates the effects of changes in interest rates, which management believes relate to general trends in global capital markets, but are not necessarily indicative of the operating performance of our segments. Management believes that Segment EBITDA provides useful information to investors, lenders, financial analysts and rating agencies about the financial performance of our segments. Additionally, management believes that investors and lenders view Segment EBITDA as an important factor in making investment decisions concerning us. Segment EBITDA is not a substitute for net income, operating cash flows or other cash flow statement data determined in accordance with accounting principles generally accepted in the United States. Segment EBITDA, as presented, may not be comparable to similar measures of other companies.

 
  VANGUARD HEALTH SYSTEMS, INC.
Segment Information (Unaudited) (continued)
(In millions)
           
Year ended June 30, 2012
Acute
Care % of Health % of
Services Revenues Plans Revenues Eliminations Consolidated
Patient service revenues, net (1) $ 5,234.0 100.0 % $ % $ (42.4 ) $ 5,191.6
Premium revenues     757.4   100.0     757.4  
Total revenues 5,234.0 100.0 757.4 100.0 (42.4 ) 5,949.0
 
Salaries and benefits

(excludes stock compensation)

2,699.9 51.6 37.8 5.0 2,737.7
Health plan claims expense (1) 621.3 82.0 (42.4 ) 578.9
Supplies 911.5 17.4 0.1 911.6
Other operating expenses 1,130.5 21.6 42.8 5.7 1,173.3
Medicare and Medicaid EHR incentives (28.2 ) (0.5 )       (28.2 )
Segment EBITDA (2) 520.3 9.9 55.4 7.3 575.7
Less:
Interest, net 184.7 3.5 (1.9 ) (0.3 ) 182.8
Depreciation and amortization 253.9 4.9 4.4 0.6 258.3
Equity method income (1.5 ) (1.5 )
Stock compensation 9.2 0.2 9.2
Loss on disposal of assets 0.6 0.6
Acquisition related expenses 14.0 0.3 14.0
Debt extinguishment costs 38.9 0.7 38.9
Impairment and restructuring charges (0.1 ) (0.1 )
Pension credits (5.1 ) (0.1 )       (5.1 )

Income from continuing operations before income taxes

$ 25.7   0.5 % $ 52.9   7.0 % $   $ 78.6  
     

(1)

We eliminate in consolidation those patient service revenues earned by our health care facilities attributable to services provided to enrollees in our owned health plans and eliminate the corresponding medical claims expenses incurred by our health plans for those services.

 

(2)

Segment EBITDA is defined as income from continuing operations before income taxes less interest expense (net of interest income), depreciation and amortization, equity method income or loss, stock compensation, gain or loss on disposal of assets, realized gains or losses on investments, acquisition related expenses, debt extinguishment costs, impairment and restructuring charges and pension expense (credits). Management uses Segment EBITDA to measure the performance of our segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA eliminates the uneven effect of non-cash depreciation of tangible assets and amortization of intangible assets, much of which results from acquisitions accounted for under the purchase method of accounting. Segment EBITDA also eliminates the effects of changes in interest rates, which management believes relate to general trends in global capital markets, but are not necessarily indicative of the operating performance of our segments. Management believes that Segment EBITDA provides useful information to investors, lenders, financial analysts and rating agencies about the financial performance of our segments. Additionally, management believes that investors and lenders view Segment EBITDA as an important factor in making investment decisions concerning us. Segment EBITDA is not a substitute for net income, operating cash flows or other cash flow statement data determined in accordance with accounting principles generally accepted in the United States. Segment EBITDA, as presented, may not be comparable to similar measures of other companies.

 
  VANGUARD HEALTH SYSTEMS, INC.
Segment Information (Unaudited) (continued)
(In millions)
           
Year ended June 30, 2013
Acute
Care % of Health % of
Services Revenues Plans Revenues Eliminations Consolidated
Patient service revenues (1) $ 5,302.4 100.0 % $ % $ (40.1 ) $ 5,262.3
Premium revenues     737.1   100.0     737.1  
Total revenues 5,302.4 100.0 737.1 100.0 (40.1 ) 5,999.4
 
Salaries and benefits

(excludes stock compensation)

2,696.5 50.9 37.7 5.1 2,734.2
Health plan claims expense (1) 617.5 83.8 (40.1 ) 577.4
Supplies 916.9 17.3 0.1 917.0
Other operating expenses 1,209.3 22.8 44.0 6.0 1,253.3
Medicare and Medicaid EHR incentives (38.0 ) (0.7 )       (38.0 )
Segment EBITDA (2) 517.7 9.8 37.8 5.1 555.5
Less:
Interest, net 196.4 3.7 0.6 0.1 197.0
Depreciation and amortization 252.9 4.8 4.2 0.6 257.1
Equity method income (1.8 ) (1.8 )
Stock compensation 6.4 0.1 6.4
Gain on disposal of assets (13.3 ) (0.3 ) (13.3 )
Realized losses on investments 0.3 0.3
Acquisition related expenses 8.1 0.2 8.1
Debt extinguishment costs 2.1 2.1
Impairment and restructuring charges 5.2 0.1 5.2
Pension credits (15.4 ) (0.3 )       (15.4 )

Income from continuing operations before income taxes

$ 76.8   1.4 % $ 33.0   4.5 % $   $ 109.8  
     

(1)

We eliminate in consolidation those patient service revenues earned by our health care facilities attributable to services provided to enrollees in our owned health plans and eliminate the corresponding medical claims expenses incurred by our health plans for those services.

 

(2)

Segment EBITDA is defined as income from continuing operations before income taxes less interest expense (net of interest income), depreciation and amortization, equity method income, stock compensation, gain or loss on disposal of assets, realized gains or losses on investments, acquisition related expenses, debt extinguishment costs, impairment and restructuring charges and pension expense (credits). Management uses Segment EBITDA to measure the performance of our segments and to develop strategic objectives and operating plans for those segments. Segment EBITDA eliminates the uneven effect of non-cash depreciation of tangible assets and amortization of intangible assets, much of which results from acquisitions accounted for under the purchase method of accounting. Segment EBITDA also eliminates the effects of changes in interest rates, which management believes relate to general trends in global capital markets, but are not necessarily indicative of the operating performance of our segments. Management believes that Segment EBITDA provides useful information to investors, lenders, financial analysts and rating agencies about the financial performance of our segments. Additionally, management believes that investors and lenders view Segment EBITDA as an important factor in making investment decisions concerning us. Segment EBITDA is not a substitute for net income, operating cash flows or other cash flow statement data determined in accordance with accounting principles generally accepted in the United States. Segment EBITDA, as presented, may not be comparable to similar measures of other companies.

 
 
VANGUARD HEALTH SYSTEMS, INC.
Selected Operating Statistics
(Unaudited)
     
Quarter ended

CONSOLIDATED AND SAME STORE:

June 30,
2012 2013 % Change
Number of hospitals at end of period 28 28
Licensed beds at end of period 7,064 7,081
Discharges 70,983 68,610 (3.3 )%
Adjusted discharges 131,641 129,533 (1.6 )
Average length of stay 4.37 4.46 2.1
Patient days 310,284 306,253 (1.3 )
Adjusted patient days 575,433 578,194 0.5
Patient revenue per adjusted discharge $ 9,659 $ 9,807 1.5
Inpatient surgeries 17,016 16,923 (0.5 )
Outpatient surgeries 33,062 32,155 (2.7 )
Observation cases 18,753 19,754 5.3
Emergency room visits 310,495 308,145 (0.8 )
Health plan member lives 234,500 238,500 1.7
Health plan claims expense percentage 72.1 % 84.2 %
 

Uncompensated care as a percent of net patient revenues(prior to these uncompensated care adjustments)

19.5 % 21.6 %
 
Net patient revenue payer mix:
Medicare 26.7 % 26.6 %
Medicaid 14.4 16.1
Managed Medicare 10.6 11.1
Managed Medicaid 9.9 11.0
Managed care 35.0 31.8
Commercial 1.3 1.5
Self-pay 2.1   1.9  
Total 100.0 % 100.0 %
 
Discharges by payer:
Medicare 29.0 % 28.9 %
Medicaid 11.0 8.8
Managed Medicare 12.5 13.3
Managed Medicaid 17.6 18.1
Managed care 22.8 22.7
Commercial 0.5 0.6
Self-pay 6.6   7.6  
Total 100.0 % 100.0 %
 
  VANGUARD HEALTH SYSTEMS, INC.
Selected Operating Statistics
(Unaudited) (continued)
   
Year ended June 30,
  (as adjusted)  

CONSOLIDATED:

2012

2012 (1)

2013 % Change
Number of hospitals at end of period 28 28 28
Licensed beds at end of period 7,064 7,064 7,081
Discharges 285,026 285,026 282,607 (0.8 )%
Adjusted discharges 518,118 518,118 521,752 0.7
Average length of stay 4.40 4.40 4.48 1.8
Patient days 1,254,121 1,254,121 1,267,183 1.0
Adjusted patient days 2,279,732 2,279,732 2,339,488 2.6
Patient revenue per adjusted discharge $ 9,637 $ 9,541 $ 9,632 1.0
Inpatient surgeries 67,258 67,258 66,231 (1.5 )
Outpatient surgeries 127,402 127,402 125,232 (1.7 )
Observation cases 71,858 71,858 76,580 6.6
Emergency room visits 1,220,357 1,220,357 1,250,800 2.5
Health plan member lives 234,500 234,500 238,500 1.7
Health plan claims expense percentage 76.4 % 76.4 % 78.3 %
 

Uncompensated care as a percent of net patient revenues(prior to uncompensated care deductions)

 

19.0 % 19.1 % 21.3 %
 
Net patient revenue payer mix:
Medicare 28.0 % 27.3 % 27.4 %
Medicaid 14.2 14.3 13.8
Managed Medicare 10.7 10.8 11.7
Managed Medicaid 9.7 9.8 10.6
Managed care 34.3 34.7 33.1
Commercial 1.3 1.3 1.5
Self-pay 1.8   1.8   1.9  
Total 100.0 % 100.0 %   100.0 %
 
Discharges by payer:
Medicare 29.2 % 29.2 % 28.8 %
Medicaid 11.4 11.4 9.4
Managed Medicare 12.5 12.5 13.0
Managed Medicaid 16.9 16.9 18.4
Managed care 22.8 22.8 22.3
Commercial 0.5 0.5 0.6
Self-pay 6.7   6.7   7.5  
Total 100.0 % 100.0 %   100.0 %
     

(1)

Excludes the impact of the updates to Medicare reimbursement estimates.

 
  VANGUARD HEALTH SYSTEMS, INC.
Selected Operating Statistics
(Unaudited) (continued)
  Year ended June 30,  
  (as adjusted)  

SAME STORE:

2012

2012 (1)

2013 % Change
Number of hospitals at end of period 26 26 26
Licensed beds at end of period 6,198 6,198 6,215
Total revenues, including premium revenues (in millions) $ 5,590.7 $ 5,542.1 $ 5,544.1 %
Net patient service revenues (in millions) $ 5,019.2 $ 4,970.6 $ 5,022.2 1.0
Discharges 261,276 261,276 254,597 (2.6 )
Adjusted discharges 484,619 484,619 478,666 (1.2 )
Average length of stay 4.36 4.36 4.45 2.1
Patient days 1,139,338 1,139,338 1,132,244 (0.6 )
Adjusted patient days 2,113,264 2,113,264 2,128,725 0.7
Patient revenue per adjusted discharge $ 9,640 $ 9,540 $ 9,656 1.2
Inpatient surgeries 60,215 60,215 58,124 (3.5 )
Outpatient surgeries 118,851 118,851 114,835 (3.4 )
Observation cases 65,640 65,640 69,073 5.2
Emergency room visits 1,150,393 1,150,393 1,158,607 0.7
Health plan claims expense percentage 76.6 % 76.6 % 78.4 %
 

Uncompensated care as a percent of net patient revenues(prior to uncompensated care deductions)

 

18.0 % 18.2 % 20.0 %
 
Net patient revenue payer mix:
Medicare 27.4 % 26.7 % 27.1 %
Medicaid 14.2 14.3 13.8
Managed Medicare 10.9 11.0 12.0
Managed Medicaid 10.1 10.2 10.7
Managed care 34.6 35.0 33.3
Commercial 1.4 1.4 1.5
Self-pay 1.4   1.4   1.6  
Total 100.0 % 100.0 %   100.0 %
 
Discharges by payer:
Medicare 28.9 % 28.9 % 28.6 %
Medicaid 10.3 10.3 9.0
Managed Medicare 13.1 13.1 13.7
Managed Medicaid 17.7 17.7 18.0
Managed care 23.1 23.1 22.8
Commercial 0.5 0.5 0.6
Self-pay 6.4   6.4   7.3  
Total 100.0 % 100.0 %   100.0 %
     

(1)

Excludes the impact of the updates to Medicare reimbursement estimates.

 




Stock quotes in this article: VHS 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs