9 Major For-Profit Hospital Companies Record $600M in Quarterly Earnings

Nine of the largest for-profit hospital operators reported quarterly earnings over the past month. Seven of the nine companies recorded second-quarter earnings for fiscal year 2013. Vanguard Health Systems posted fourth-quarter and year-end results for FY 2013, and IASIS Healthcare posted third-quarter financials for FY 2013.

In the quarter ended June 30, the big nine hospital companies recorded a cumulative profit of $600.6 million — a $73 million increase from the quarter ended March 31. They also posted more than $20.6 billion in quarterly revenue in the most recent quarter.

However, two hospital companies — Hospital Corp. of America and Universal Health Services — were the major drivers of the profit and revenue totals. In addition, several companies posted lower earnings compared with the same period in 2012 due to lower admissions and surgeries, and a few also reported ongoing investigations with the Department of Justice.

Here are the quarterly financials of all nine hospital companies, starting with the most recently released.

1. In the fourth quarter ended June 30, net income at Nashville, Tenn.-based Vanguard Health Systems dropped 25 percent to $14.5 million, but its year-end earnings still improved from 2012.

2. Naples, Fla.-based Health Management Associates recorded an 80 percent decline in profit in the second quarter of its fiscal year, from $37 million last year to $7.4 million this year, meeting its inauspicious projections it released at the end of July.

ForProfitHospitalCompanies3. Profit at Franklin, Tenn.-based IASIS Healthcare dropped 71 percent in its third fiscal quarter — from $10.8 million to $3.2 million — but admissions were actually up across the hospital operator's network.

4. Dallas-based Tenet Healthcare Corp. reported a loss of $50 million in the second quarter of 2013, compared to a $6 million loss in the second quarter of 2012.

5. Franklin, Tenn.-based Capella Healthcare lost $6.5 million in the second quarter, the fifth straight quarter in which the hospital operator posted red ink.

6. Net income attributable to Nashville, Tenn.-based Hospital Corp. of America rose 8.2 percent in the second quarter of 2013 to $423 million thanks mostly to a boost in admissions and stable surgery cases.

7. In the second quarter of fiscal year 2013, profit at Franklin, Tenn.-based Community Health Systems plummeted more than 64 percent, from $83.4 million to $29.8 million, which mirrored CHS' expectations.

8. Drops in admissions and surgeries, coupled with higher-than-expected operating expenses, led to a down second quarter for Brentwood, Tenn.-based LifePoint Hospitals. LifePoint's net income in the quarter fell 32 percent, from $40.3 million to $27.4 million.

9. In the second quarter ended June 30, 2013, King of Prussia, Pa.-based Universal Health Services recorded a 41.2 percent jump in profit, from $107.6 million last year to $151.8 million this year.

More Articles on For-Profit Hospitals:
Fitch: HMA's Credit Not Punctured in Board Firings
Vanguard Adopts 6-Month Cash Bonus Program for Top Executives
For-Profit Hospital Stock Report: Week of Aug. 12-16, 2013

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