SEC Filings

10-Q
ENVISION HEALTHCARE CORP filed this Form 10-Q on 11/03/2017
Entire Document
 
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations - (continued)

Physician Services Operations

Our physician services segment represents the combination of the historical physician services segment from AmSurg and the historical physician services segment from EHH. We utilize certain measures for our physician services operations to monitor our net revenue growth, which includes same contract, new contract, terminated contracts and acquired contract revenues. Our same contract revenue reflects revenue received from services provided through contracts in existence in both comparable reporting periods. Our new contract revenue reflects revenue from contracts that have not been in effect for both the entire current and comparable periods. Terminated contracts reflect decreased revenue from contracts terminated during such periods. Acquired contract revenue reflects the revenue from acquisitions that were completed during the periods. The following table presents the percentage change related to our net revenue growth and same contract revenue growth assuming the Merger had occurred on January 1, 2016, based on separately reported historical results.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Contribution to Net Revenue Growth:
 
 
 
 
 
 
 
Same contract
0.4
 %
 
5.9
 %
 
2.1
 %
 
6.6
 %
New contracts
6.7

 
2.8

 
6.2

 
3.1

Terminated contracts
(9.1
)
 
(1.8
)
 
(9.4
)
 
(2.1
)
Acquired contract and other
9.6

 
41.9

 
9.8

 
34.7

Total net revenue growth
7.6
 %
 
48.8
 %
 
8.7
 %
 
42.3
 %
 
 
 
 
 
 
 
 
Patient encounters per day (day adjusted)
(0.7
)%
 
2.9
 %
 
1.1
 %
 
4.8
 %
Net revenue per encounter
1.3

 
4.6

 
2.0

 
2.8

Same contract revenue growth
0.6
 %
 
7.5
 %
 
3.1
 %
 
7.6
 %

We evaluate our physician services revenue net of contractual adjustments and provisions for uncollectible charges. Payors generally receive discounts from standard charges, which we refer to as contractual adjustments. In addition, patients our physicians serve may be personally responsible for the payment of the medical services they receive. Our contracts with hospitals and other facilities typically require us to provide care to all patients who present at locations where we perform services. While we seek to bill for all medical services we provide, a portion of our medical services are delivered to patients that have no insurance and from whom we cannot collect full compensation. As a result, we establish a provision for uncollectible charges. Our net revenue from our physician services operations represents gross billings after provisions for contractual allowances and uncollectibles.

The following tables and comparisons to prior periods include results of EHH effective December 1, 2016, the date of the Merger.

The following table summarizes our approximate payor mix as a percentage of net revenue and our approximate payor mix based on patient encounters for the periods indicated.
 
Percentage of Net Revenue
 
Percentage of Total Volume
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Medicare
20
%
 
13
%
 
20
%
 
13
%
 
33
%
 
35
%
 
33
%
 
35
%
Medicaid
7

 
6

 
8

 
6

 
23

 
20

 
24

 
21

Commercial and managed care
55

 
73

 
55

 
72

 
31

 
35

 
30

 
35

Self-pay
2

 
1

 
2

 
1

 
13

 
10

 
13

 
9

Net fee for service revenue
84

 
93

 
85

 
92

 
100
%
 
100
%
 
100
%
 
100
%
Contract and other revenue
16

 
7

 
15

 
8

 
 
 
 
 
 
 
 
Net revenue for physician services
100
%
 
100
%
 
100
%
 
100
%
 

 

 
 
 
 

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