Revenue and profit both took a hit in the third quarter of Vanguard Health Systems' 2013 fiscal year, forcing the Nashville, Tenn.-based hospital company to lower its projected earnings for the year.
Vanguard's net income dropped by more than half, from $44 million in the third quarter of FY 2012 to $21.3 million in the third quarter this year. Third-quarter total revenue fell 5.3 percent, from $1.58 billion to $1.50 billion. Vanguard attributed the losses to a variety of factors, including last year's nonrecurring revenue boost from the industry-wide "rural floor settlement," higher uncompensated care and fewer members enrolled in its Phoenix-based health plan.
Same-hospital discharges dropped 3.2 percent across Vanguard's 28 acute-care hospitals, and adjusted discharges dipped 1.8 percent. Capping off Vanguard's poor third quarter, were inpatient surgeries, outpatient surgeries and emergency room visits, which were down 5.1 percent, 6.1 percent and 2.3 percent, respectively.
Vanguard revised the outlook for the remainder of its FY 2013. Previously, it predicted net income this year would total between $62 million and $77 million, but that was lowered to a range of $59 million to $65 million. Vanguard also lowered the top end of its adjusted EBITDA range from $575 million to $560 million.
However, for the nine months ended March 31, Vanguard's profit totaled $47.4 million, a 24.7 percent increase from the first nine months of FY 2012. Year-to-date total revenue was down 0.3 percent, totaling $4.48 billion.
Vanguard's net income dropped by more than half, from $44 million in the third quarter of FY 2012 to $21.3 million in the third quarter this year. Third-quarter total revenue fell 5.3 percent, from $1.58 billion to $1.50 billion. Vanguard attributed the losses to a variety of factors, including last year's nonrecurring revenue boost from the industry-wide "rural floor settlement," higher uncompensated care and fewer members enrolled in its Phoenix-based health plan.Same-hospital discharges dropped 3.2 percent across Vanguard's 28 acute-care hospitals, and adjusted discharges dipped 1.8 percent. Capping off Vanguard's poor third quarter, were inpatient surgeries, outpatient surgeries and emergency room visits, which were down 5.1 percent, 6.1 percent and 2.3 percent, respectively.
Vanguard revised the outlook for the remainder of its FY 2013. Previously, it predicted net income this year would total between $62 million and $77 million, but that was lowered to a range of $59 million to $65 million. Vanguard also lowered the top end of its adjusted EBITDA range from $575 million to $560 million.
However, for the nine months ended March 31, Vanguard's profit totaled $47.4 million, a 24.7 percent increase from the first nine months of FY 2012. Year-to-date total revenue was down 0.3 percent, totaling $4.48 billion.
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