8 Major For-Profit Hospital Operators Release Quarterly Earnings
Eight of the largest for-profit hospital operators reported quarterly earnings over the past month. Seven of the eight companies recorded third quarter earnings for fiscal year 2012. Vanguard Health Systems posted first-quarter results for FY 2013.
Here are the quarterly financials of all eight hospital companies, starting with the most recent. Note: Franklin, Tenn.-based IASIS Healthcare has not yet posted financials for the fourth quarter of its 2012 fiscal year. It has not indicated when it will do so.
1. A sharp rise in outpatient surgeries and several cost containment measures helped Dallas-based Tenet Healthcare record a profit of $40 million in the third quarter of 2012 — more than six times its $6 million profit from the third quarter of 2011.
2. Franklin, Tenn.-based Capella Healthcare reported a net loss of $5.5 million in the third quarter of fiscal year 2012, which was a 50 percent increase in its losses from the 2011 quarter.
3. Third-quarter profit for Nashville, Tenn.-based Hospital Corporation of America hit earlier estimates of $360 million, which was significantly higher than last year but lower than expectations from the beginning of the quarter.
4. Last year, Vanguard Health Systems in Nashville, Tenn., got off to a rough start in its first quarter, posting a $21.7 million loss. However, the tides turned for the for-profit hospital chain's first quarter of fiscal year 2013, as Vanguard reported a profit of $13.9 million.
5. Profit at Community Health Systems took a nosedive in the most recent third quarter, as the Franklin, Tenn.-based for-profit hospital chain recorded net income of $44.2 million — a 40.5 percent drop from the $74.3 million posted in the third quarter of 2011.
6. Universal Health Services, based in King of Prussia, Pa., recorded several strong quarters over the past year, but the third quarter of 2012 was a minor setback. Net income attributable to UHS in the third quarter fell 15.6 percent, from $85.1 million last year to $71.8 million this year, due mostly to lower-than-expected results at its acute-care facilities.
7. Brentwood, Tenn.-based LifePoint Hospitals said its third quarter profit fell 51 percent due to acquisition expenses, higher operating costs, lost revenue from Hurricane Isaac and experiences with Medicare Recovery Auditors. Net income plunged from $38.8 million in the third quarter of 2011 to $19.2 million this year.
8. Rising expenses continued to hammer away at Health Management Associates' earnings, as the Naples, Fla.-based for-profit hospital operator reported its third straight quarter of lower profit in 2012. Net income in the quarter ended Sept. 30, 2012, dropped to $41.34 million — a 5.5 percent decrease from $43.73 million in the third quarter of 2011.
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