Hill Physicians Reports Flat Earnings

Hill Physicians Medical Group, the largest independent physician practice in Northern California, reported moderately improved net income and revenue for calendar 2012.

Hill Physicians, a not-for-profit based in San Ramon, reported net income of $11.8 million on revenue of $491 million. Net income rose less than 2%, from 2011's net income of $11.6 million. Revenue was up 2.2%, from 2011's $480 million.

Hill Physicians chief executive officer Darryl Cardoza said the numbers were a sign the IPA was maintaining its market share, despite changes being wrought by the Affordable Care Act and other market forces.

“We kept pace with a rapidly changing healthcare environment,” said Cardoza, who took over running Hill Physicians from its longtime CEO Steve McDermott last year.

Cardoza noted that the organization has been successful with its three accountable care organizations, which has about 60,0000 enrollees in total from CalPERS, the University of California, and the city of San Francisco. One is being operated in tandem with CalPERs and San Francisco-based Blue Shield of California, and has saved about $59 million over the past three years, according to Hill Physicians.

Altogether, Hill Physicians paid its network of 3,800 physicians $44 million in incentives last year to reduce the costs of providing care.

However, the savings did not completely mollify CalPERS, which last spring added four more health plans to compete with Blue Shield in offering healthcare benefits to its retirees.