LifePoint posts $52M profit as it seeks sale to private equity firm

Brentwood, Tenn.-based LifePoint Health saw revenues decline in the second quarter of 2018, but the company ended the period with a profit.

LifePoint recorded revenues of $1.57 billion in the second quarter of 2018, down slightly from $1.59 billion in the same period a year earlier. The decline was due in part to LifePoint operating one less hospital in the second quarter of 2018 than in the same period of 2017. On a same-hospital basis, revenues climbed 0.6 percent year over year.

LifePoint's financials were affected by lower patient volume. Admissions, inpatient surgeries and emergency room visits declined year over year in the second quarter of 2018 on a same-hospital basis. However, outpatient surgeries were up 1.5 percent in the second quarter of this year.

After factoring in operating expenses and one-time charges, LifePoint ended the second quarter of 2018 with net income attributable to the company of $52.4 million, up from $42.5 million in the second quarter of 2017.

LifePoint released its second-quarter earnings just a few days after disclosing that private equity firm Apollo Global Management will purchase the company for $5.6 billion including debt. Under the transaction, LifePoint will combine with the health system operator Apollo currently owns, Brentwood-based RCCH HealthCare Partners.

"We are excited about our recently announced merger with RCCH Healthcare Partners and believe that together we will be able to meaningfully extend our mission and ensure that non-urban communities across the country have access to quality care, while generating new opportunities for growth and partnerships that will help us navigate the changing healthcare industry dynamics," William F. Carpenter III, chairman and CEO of LifePoint, said in an earnings release.

More articles on healthcare finance:

For-profit hospital operators by the numbers: A look at HCA, Tenet, CHS, LifePoint and UHS
HCA's profit jumps 25% to $820M in Q2
CHS sees net loss narrow to $110M, pursues $2B hospital divestiture plan


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