Six of the largest for-profit operators of acute-care hospitals reported quarterly earnings over the past several weeks.
In the quarter ended March 31, the big six hospital companies recorded a cumulative net profit of $372.2 million, down significantly from last year's total as the industry becomes more consolidated. HCA, UHS and LifePoint drove all of the profits as the other major three players suffered net losses. The companies that posted losses suffered through soft volumes and high acquisition-related costs/issues.
Here are the quarterly financials of the six hospital chains, starting with the most recently released.
1. Soft admissions coupled with the early stages of integrating the hospitals within Health Management Associates battered the bottom line of Community Health Systems in the first quarter. In the three months ended March 31, Franklin, Tenn.-based CHS posted a net loss of $112 million. That total includes the operational and impairment losses of two hospitals that CHS must sell as part of the HMA merger deal.
2. Franklin, Tenn.-based IASIS Healthcare lost $6 million, compared with a net profit of $1.2 million in the same period a year ago. Losses from the company's discontinued Florida operations drove the second-quarter loss, as did Medicare sequestration and other one-time expenses.
3. Despite fully integrating Vanguard Health Systems and reaping early benefits from healthcare reform, Dallas-based Tenet Healthcare Corp. posted a $32 million loss in the first quarter.
4. Net income at Nashville, Tenn.-based Hospital Corporation of America grew a modest 0.9 percent in the first quarter of fiscal year 2014, totaling $347 million.
5. In the first quarter of fiscal year 2014, Brentwood, Tenn.-based LifePoint Hospitals posted $37.1 million in net earnings, a 14.5 percent increase from the same period a year ago.
6. Net profit at King of Prussia, Pa.-based Universal Health Services soared 15.2 percent in the first quarter of 2014, totaling $138.1 million, and its acute-care hospital base performed particularly well. UHS acute-care hospitals posted a 19.8 percent operating margin.
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