Cleveland Clinic reported a record $481 million in operating income on $7.2 billion revenue in 2015. Cleveland Clinic CEO Delos “Toby” Cosgrove said that improvements in its cost structure drove increased income, according to the Plain Dealer. “Over the last three years, we have reduced the cost of providing care some $600 million," Cosgrove said. "Had we not been able to make that reduction in our cost and efficiency, we would have had one of the worst financial years that we have ever had.”
Tenet Healthcare Corp. reported adjusted EBITDA of $1.65 billion and adjusted net income on $16.93 billion in revenue in 2105, an increase of 8% in revenue and unchanged EBITDA from the prior year. In a press release, Tenet chairman and CEO Trevor Fetter said the hospital operator “experienced pressure on lower acuity inpatient hospital admissions and continued to drive increases in higher-acuity admissions” in the third and fourth quarter, but that Tenet was poised to “deliver strong growth in Adjusted EBITDA and improved Adjusted Free Cash Flow in 2016.”
Kindred Healthcare posted a $93.4 million loss on $7.05 billion in revenue in 2015. In a press release, the company said it expects to generate $990 million in EBITDA excluding restructuring, on $7.25 billion in revenue in 2016.
Kindred said revenues grew in its home health and hospice businesses, despite reducing the number of home health locations from 427 to 373 and hospice agencies from 193 to 175. Average home health revenue per branch grew 18.0% over the previous year, and average hospice revenue increased 13.8%.
“Throughout 2015, our focus at Kindred has been growing and transforming our operations and clinical capabilities to expand our national leadership in post-acute care,” said Kindred president and CEO Benjamin A. Breier. “We are confident that Kindred’s full continuum of post-acute services…uniquely position us to successfully transition to a value-based healthcare system.”