Dive Brief:
- San Diego, CA-based hospital system Scripps Health shows improved revenue growth due to increased patient volume and funds from the state's program for hospitals serving low-income patients.
- The system's second-quarter earnings report shows ongoing improvement begun in the first quarter, with an operating surplus of $36.6 million on $649 million in operating revenue. That compares to an operating surplus of $32 million on $600.2 million in revenue during the prior-year period.
- Fitch Ratings gave Scripps a ratings upgrade in April, moving it up from AA- to AA.
Dive Insight:
Scripps owes a lot of its revenue growth in the second quarter to the return of funds from California's provider fee program, which spent much of the previous year on hiatus while awaiting an extension.
Other growth is attributed to increases in emergency department visits, outpatient visits and trauma cases.
Fitch's ratings upgrade notes that Scripps' growth has occurred in a competitive market, and that it has benefited from moves including its agreement with Kaiser Permanente to extend its cardiac services to Kaiser members.