Executives warned, however, that the delta variant is raging. “It remains clear that the pandemic is not over, and the environment could remain choppy for the balance of the year,” CEO Michael Neidorff said.
Executives on a conference call stressed per-member revenue metrics and touted new contracts, including with major Blues payer HCSC, but investors pushed shares down.
“The concern is with the resurgence of COVID that turnover rates could increase because we’ve seen turnover rates increase every time that COVID volumes increase,” CEO Marc Miller said.
Medical utilization bounced back faster than the payer expected, though the company was still able to post a profit for the second quarter.
Among unvaccinated workers at Geisinger’s system in Pennsylvania, an email nudge playing up social norms and virus risk caused more than twice as many employees to register for a shot compared with those who didn’t get the note.
The acquisitions won’t result in an immediate boost for Amwell’s topline, but could be valuable strategic positioning for the future.
Digitalization can simplify the medical bill payment process and give patients more information earlier on about their financial responsibilities, experts said.
Those COVID-19 costs quickly tapered off as the quarter progressed, executives said. Still, the insurer was able to post a second quarter profit as more members sought care.
In the long term, hospitals will face increased pressure from tight labor and wage markets, especially for experienced staff, as well as rising pharmaceutical and supply chain costs, the ratings agency warned.
Jefferies analysts said in a Thursday note they view the results positively, especially a jump in surgeries and “healthy organic growth trends.” Still, CHS’ stock was trading down about 8% Thursday morning.