IASIS' 4Q, Year-End Profits Slump
Medicaid cuts and increasing amounts of uncompensated care dug into the earnings of Franklin, Tenn.-based IASIS Healthcare (pdf), as the for-profit hospital operator recorded a loss of $413,000 in the fourth quarter of its 2012 fiscal year.
The net loss was actually lower compared with the $3.1 million loss in the fourth quarter of FY 2011. Net revenue in the fourth quarter fell 2.2 percent, from $647.5 million last year to $633 million this year.
IASIS CEO Carl Whitmer said in a news release that despite the "ongoing economic and industry headwinds" that included Medicaid reductions and larger amounts of charity care and bad debt, the company will ramp up its focus on "operational excellence across all clinical and business sectors" next year.
For the year ended Sept. 30, IASIS profits and revenues also took hits. Net income dropped 27 percent, from $31.4 million in 2011 to $22.9 million this year. Net revenue was nearly identical year-over-year, but fell $818,000 to $2.54 billion. Adjusted EBITDA for the year stood at $302.2 million, down slightly from FY 2011.
IASIS also released same-facility financial and operating data for the fourth quarter and FY 2012. Admissions rose 0.5 percent in the fourth quarter and 1.3 percent on the year. Adjusted admissions increased 2 percent and 2.9 percent, respectively. In FY 2012, outpatient revenue represented 42 percent of gross patient revenue, almost a full percent higher than last year.
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