Profit at Franklin, Tenn.-based IASIS Healthcare dropped 71 percent in its third fiscal quarter — from $10.8 million to $3.2 million — but admissions were actually up across the hospital operator's network.
IASIS executives attributed the loss in third-quarter net income to Medicaid reimbursement pressures in Texas, start-up costs in its Houston market and one-time Medicare adjustments from last year. In a news release, IASIS President and CEO Carl Whitmer said the company was still pleased with the quarter, in which the chain also invested in population health management and other "strategic growth opportunities."
Third-quarter net revenue increased 3.7 percent to $599.1 million thanks to a 0.9 percent bump in admissions and a 5 percent boost in adjusted admissions. Within the earnings report, IASIS classified its Florida market as "discontinued." Last month, IASIS agreed to sell all three of its Florida hospitals to Nashville, Tenn.-based Hospital Corp. of America for an undisclosed amount of money.
In the first nine months of IASIS' 2013 fiscal year, net income totaled $6.9 million, down from $23.3 million recorded in the first nine months of FY 2012. Net revenue increased 2.7 percent to $1.79 billion. Adjusted EBITDA totaled $195.8 million, compared with $218.8 million in the same period last year.
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