9 Major For-Profit Hospital Companies Post $527M in Quarterly Profits

Nine of the largest for-profit hospital operators reported quarterly earnings over the past month. Seven of the nine companies recorded first-quarter earnings for fiscal year 2013. Vanguard Health Systems posted third-quarter results for FY 2013, and IASIS Healthcare posted second-quarter financials for FY 2013.

In the quarter ended March 31, the big nine hospital companies — which operate more than 540 acute-care hospitals and more than 170 behavioral health hospitals — recorded combined profit exceeding $527.4 million. They also posted more than $20.7 billion in quarterly revenue in the first three months of 2013.

Despite the healthy cumulative financials, the for-profit hospital sector actually recorded many struggles in the most recent quarter. Admissions and surgeries were down almost across the board, and lower profit totals were influenced by last year's industry settlement with HHS and CMS, which compensated 2,200 hospitals that were underpaid from the Medicare inpatient prospective payment system from 1999 to 2011.

Here are the quarterly financials of all nine hospital companies, starting with the most recent.

1. Franklin, Tenn.-based IASIS Healthcare recorded profit of $1.2 million in the second quarter of 2013 — an 89 percent freefall from the $11.2 million posted in the same period last year. Net revenue increased slightly to $654.1 million.

2. In the first three months of FY 2013, Franklin, Tenn.-based Capella Healthcare lost $5.6 million — a big drop from the $4.7 million in profit it recorded in the same period last year. Revenue fell 5 percent to $187.2 million.

3. Earnings in the first quarter of 2013 for Health Management Associates fell in step with its preview earlier this month, as the Naples, Fla.-based for-profit hospital chain recorded a 38.7 percent drop in profit, from $37.7 million in 2012 to $23.1 million this year. Net revenue fell to $1.48 billion.

4. Net income attributable to Nashville, Tenn.-based Hospital Corporation of America in the first quarter of 2013 slipped more than 36 percent, from $540 million last year to $344 million this year. First-quarter revenue creeped up a nominal 0.4 percent to $8.44 billion.

5. 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.

6. Dallas-based Tenet Healthcare reported a first-quarter loss of $88 million, compared with a $58 million net profit in the first quarter of 2012, due mostly to lagging patient admissions. Tenet's net revenue climbed 3.7 percent, from $2.30 billion in the first quarter of 2012 to $2.39 billion this year.

7. Franklin, Tenn.-based Community Health Systems recorded a profit of $79.2 million in the first three months of 2013 — a 4.9 percent jump from last year. CHS' first-quarter revenue topped $3.31 billion, which was only a 0.4 percent increase from the first quarter of 2012.

8. First-quarter profit at Brentwood, Tenn.-based LifePoint Hospitals dropped 42.4 percent, from $56.1 million in 2012 to $32.4 million this year. LifePoint's revenue in the first quarter this year increased 9.4 percent to $931.1 million.

9. King of Prussia, Pa.-based Universal Health Services recorded $119.8 million of net income in the first quarter of 2013, which was a 7 percent decrease from the same period a year ago. Net revenue rose a mild 2.2 percent, from $1.79 billion last year to $1.83 billion this year.

More Articles on For-Profit Hospitals:

For-Profit Hospital Stock Report: Week of April 29-May 3, 2013
Fitch: For-Profit Hospital Mergers Still Spurred by Affordable Care Act
78 Statistics on For-Profit Hospital Operator Executive Compensation

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