In the second quarter of its 2013 fiscal year, Nashville, Tenn.-based Vanguard Health Systems reported net income dropped 22.3 percent to $12.2 million even though total revenue continued to increase.
Vanguard's drop in profit was mostly attributable to higher interest payments on its debt, capital investments made toward Detroit Medical Center and lower payments from CMS' Medicare and Medicaid Electronic Health Record Incentive Program.
Total revenue in the second quarter of FY 2013 increased 2.6 percent from the same period a year ago, from $1.48 billion to $1.51 billion.
For the six months ended Dec. 31, 2012, Vanguard posted total profit of $26.1 million, a significant difference from the $6 million loss during the first six months of its FY 2012. Vanguard's total revenue through the first six months of FY 2013 grew 2.5 percent, still somewhat below company expectations.
Adjusted EBITDA totaled $271 million through the first six months, higher than the first six months of FY 2012, but Vanguard's total assets dropped 3 percent to $4.64 billion as the for-profit hospital operator spent larger amounts of cash.
Vanguard also recorded same-hospital operating statistics for the second quarter. Discharges fell 1.8 percent, adjusted discharges dropped 0.2 percent, inpatient surgeries decreased 4.3 percent and outpatient surgeries fell 2.1 percent. However, observation cases increased 9.1 percent, while emergency room visits rose 3.8 percent.
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