Despite Consistent Revenues, Scripps Health Sees a Decrease in the Surplus

shutterstock_31784893

Scripps Health, a four-hospital system in San Diego ended 2014 with a drop in its operating surplus, despite seeing nearly equivalent revenue to the previous year.  Net surplus in 2014 was $291.6 million, about $80 million lower than the $370.8 million surplus in 2013.

All California healthcare providers have struggled from a loss of funds from the California provider fee program. California approved an extension for the program, but implementation has been delayed while it awaits CMS approval. For Scripps, the loss of provider-fee revenue dragged down its overall net patient service revenue for the year by a total of 6.2%. 

Scripps was able to make up for the loss in revenue in part by doubling its investment income. In addition to the increased investment income, the losses were also offset by a slight decrease in allowance for doubtful accounts for self-pay receivables, and an increase in revenue from self-pay patients as a percentage of total revenue.