IASIS Posts $10.8M Profit in 3Q, But Net Revenue Sags

Franklin, Tenn.-based IASIS Healthcare (pdf) recorded $10.8 million in profit in the third quarter of its 2012 fiscal year, an improvement over a $463,000 loss in the third quarter of 2011, but the for-profit hospital operator's net revenue took a slight hit downward.

Net revenue fell 3 percent, from $650.5 million in the third quarter of FY 2011 to $631.3 million this year, due to a $46.4 million decline in premium revenue at Health Choice, which is IASIS' Medicaid and Medicare managed health plan in Arizona. Arizona's Medicaid program recently mandated reductions in certain Medicaid enrollees and made capitation rate reductions to save the state money.

However, IASIS' profit of $10.8 million was attributed to an income benefit expense of $7.5 million, and the company also did not endure any losses on debt extinguishment. In the third quarter of last year, IASIS incurred a $23.1 million loss from an early payment of debt.


For the nine months ended June 30, 2012, IASIS recorded net income of $23.3 million, down 17.7 percent from $28.3 million in the first nine months last year. Net revenue ticked up slightly in the first nine months at 0.7 percent, from $1.89 billion last year to $1.9 billion this year. IASIS' adjusted EBITDA also stands at $231.5 million for the first nine months.

Same-facility hospital admissions dropped 0.4 percent in the third quarter, which adjusted admissions increased 0.5 percent. Year-to-date operating data are similar, as adjusted admissions crept up 2.6 percent.

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