In the quarter ended March 31, 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, including a noncash stock compensation charge of $2.8 million and special bonus payments of $3.5 million. Adjusted EBITDAR, which is an industry and investor measure of cash earnings before impact of the rent expense associated with recent sale-leaseback transactions, grew approximately 4 percent year-over-year when normalized for certain nonrecurring costs, said IASIS CFO John Doyle in an earnings call.
In addition, admissions fell 3.6 percent, while adjusted admissions decreased 0.2 percent. IASIS President and CEO Carl Whitmer said in the call that lower admissions have been seen nationwide, and the extreme winter and mild flu season piled onto the downward trend. Outpatient surgeries were up 2.2 percent.
However, net revenue at IASIS in the second quarter increased 7.7 percent to $648.1 million. Mr. Whitmer said his system was able to improve revenue due to Medicaid expansion under the Patient Protection and Affordable Care Act. IASIS felt the benefits of Medicaid expansion most in Arizona, where it operates three acute-care hospitals, a behavioral health center and a Medicaid managed care plan.
For the first six months of IASIS' 2014 fiscal year, the private, for-profit system lost $831,000 compared with a $3.7 million profit in the first half of 2013. Revenue increased almost 6 percent to $1.26 billion.
IASIS is in the process of adding a new hospital to its ranks: The company has broken ground on Mountain Point Medical Center, which will be a 40-bed, full-service community hospital in Lehi, Utah. MPMC will be IASIS' fifth hospital in Utah and is expected to open in 2015. In the earnings call, Mr. Whitmer also said IASIS is in talks to potentially acquire hospitals in new and existing markets.
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