Abrupt physician departures take toll on LifePoint's bottom line

Brentwood, Tenn.-based LifePoint Health saw revenue increase in the second quarter of 2016, while net income dropped.

LifePoint reported revenue of $1.6 billion in the second quarter, up 25.3 percent from $1.3 billion in the same period of the year prior. LifePoint said the financial boost was primarily attributable to its recent acquisitions of hospitals in Kentucky, Indiana, Wisconsin, North Carolina, Georgia and South Carolina.

Although LifePoint saw revenue rise in the second quarter, the company said the loss of key physicians at one of its largest hospitals caused expenses to increase. "This resulted in additional professional fees, call pay, severance costs and recruiting expenses," said LifePoint.

The company also incurred the expense of implementing a new physician billing system at one of its recently acquired hospitals. 

LifePoint ended the second quarter with net income of $20.1 million, down 59.6 percent from $49.8 million in the same quarter of the year prior.

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