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Colorado Managed Care Review 2007


Description: (Denver) Hospitals here, included two of the three new hospitals in the Denver area, reported very strong profits in 2006. Colorado HMOs reported record profits in 2006 and the first half of 2007, even as their enrollment continued to decline.

These and other findings are reported in Colorado Managed Care Review 2007, to be released on Friday, April 11. This is the 14th edition of Allan Baumgarten's annual analysis of trends and issues in the Colorado?s health care market. Baumgarten, an independent analyst and researcher on health finance in local markets has published his Colorado market study since 1994 He also publishes annual market reports in California, Florida, Illinois, Kentucky, Michigan, Minnesota, Ohio, Texas and Wisconsin. A new Arizona study will be published in 2008.

Report findings

In 2006, hospital systems in the Denver area enjoyed very strong profits. According to Baumgarten?s analysis of hospital cost reports submitted to Medicare, hospitals in the Denver area had net income of $475 million or 9% of net patient revenues. The seven HealthOne/HCA hospitals, the largest system here, had net income before taxes of $283.7 million in 2006, or 14.1% of net patient revenue. The Centura and Exempla systems also reported strong net income. Two of the three new hospitals in the Denver suburbs, HealthOne Sky Ridge and Parker Adventist, had very strong results. While hospital utilization has increased, the new capacity has been followed by lower occupancy rates


Contents: 1. Colorado HMOs at a Glance
2. Market Share of Colorado HMOs
3. Denver Area Hospital Systems at a Glance
4. Colorado HMO Enrollment by Line of Business, 2006
5. Colorado HMO Enrollment, 1993-2007
6. Colorado HMO Enrollment, June 2007
7. Premium Volume for Major Health Insurers (Outside of HMOs), 2006
8. Enrollment in Colorado Medicare Managed Care Plans, 1994-2007
9. Enrollment in Medicare Advantage Plans, 2007
10. Estimated HMO Enrollment and Penetration by Region, 2006
11. Profits and Losses for Largest Colorado HMOs, 1994-2006
12. Net Income for Colorado HMOs, 2006
13. HMO Net Income, First Half of 2007
14. HMO Underwriting Net Income by Line of Business, 2006
15. HMO Average Commercial Premium Revenue Per Member Per Month, 1994-2006
16. HMO Commercial Premium Revenue Per Member Per Month, 1996-2006
17. HMO Medical Loss Ratios and Medical Expenses, Per Member Per Month, for Commercial Plans
18. Administrative Expenses for Colorado HMOs, 2005 and 2006
19. HMO Use of Capitation Payments, 2001-2006
20. HMO Net Worth, 2005-2006
21. HEDIS Effectiveness of Care Measures for Commercial HMOs, 2006
22. Inpatient Hospital Utilization Measures for Commercial HMOs, 2006
23. Ambulatory Care Utilization for Commercial HMOs, 2006
24. Prescription Drug Expenses for Commercial HMOs, 2006
25. Enrollee Satisfaction Measures Reported on CAHPS Survey for Commercial Health Plans, 2006
26. Metro Denver Hospitals and Hospital Systems
27. Revenues and Net Income for Denver Metro Area Hospitals, 2006
28. Net Income for Denver Area Hospitals, 2002-2006
29. Occupancy and Payer Mix for Denver Metro Area Hospitals, 2006
30. Revenues and Profits for Largest Outstate Hospitals, 2006
31. Occupancy and Payer Mix for Largest Outstate Hospitals, 2006




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