Vanguard Health Systems Loses $9.9M in Q4, Revenue Increases

Nashville, Tenn.-based Vanguard Health Systems reported a net loss of $9.9 million in the fourth quarter of fiscal year 2011 compared with a net income of $2.8 million in the same quarter last year, according to a Vanguard release.

Vanguard attributed the loss to the termination of its transaction and monitoring fee agreement with its equity sponsors in tandem with Vanguard's initial public offering and the financial and advisory fees paid to its equity sponsors for FY 2011 transactions.

However, Vanguard's overall operating revenues for the fourth quarter of FY 2011 were $1.5 billion, up nearly 75 percent from the fourth quarter of fiscal year 2010. It also reported a same hospital total revenue increase of 3.9 percent, primarily comprised of a 0.7 percent increase in adjusted discharges.

The company also reported its incomes and revenues for the year ending June 30, 2011. Vanguard's net loss was $10.9 million in FY 2011 compared with its net loss of $49.2 million in FY 2010. Vanguard's total revenue in FY 2011 was $4.89 billion, up nearly 45 percent from its $3.38 billion in total revenue in FY 2010. Same hospital total revenues during FY 2011 increased 4.5 percent due to a 2.4 percent increase in adjusted discharges.

According to the release, increases in consolidated total revenues were primarily due to its acquisition of The Detroit Medical Center this past January and other hospitals acquired earlier in FY 2011. Vanguard currently owns 26 hospitals in five states.

Related Articles on Vanguard Health Systems:

Chicago's Holy Cross Hospital, Vanguard Health Systems Planned Merger Called Off
How Investors Profit From Ailing Hospitals
Vanguard Health's IPO Raises $450M

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