Franklin, Tenn.-based IASIS Healthcare posted a $3.6 million loss in the fourth quarter of its 2013 fiscal year, and net profit for the entire year totaled only $3.3 million — an 86 percent drop from FY 2012.
IASIS' down year has been felt throughout the for-profit hospital industry. Operators have consistently cited reimbursement cuts, soft inpatient volumes and rising uncompensated care as factors behind the lower profit and operating results.
Despite the dismal fourth quarter and fiscal year, Carl Whitmer, president and CEO of IASIS, said he remained optimistic about his company's future earnings.
"As we look forward, we believe the work we have undertaken over the past several years to truly integrate our proven population health management experience with our demonstrated operations efficiency has positioned IASIS Healthcare for long-term success in the new era of value-based healthcare delivery," Mr. Whitmer said.
For the quarter ended Sept. 30, IASIS recorded net revenue of $584.7 million, up slightly from $582.5 million recorded in the same three-month period last year. On the year, IASIS' net revenue ticked up 2.1 percent to almost $2.38 billion.
In FY 2013, admissions at IASIS hospitals dropped 1 percent, but adjusted admissions increased 2.9 percent. Outpatient services grew to 43.2 percent of IASIS' gross patient revenue.
IASIS owns and operates 16 acute-care hospitals. The smaller portfolio resulted from the company's sale of its Florida market. In October, IASIS completed the sale of its three Florida hospitals to competitor Hospital Corporation of America, based in Nashville, Tenn.
IASIS plans to use the proceeds of that sale, as well as its sale-leaseback transaction with Birmingham, Ala.-based Medical Properties Trust, to pursue various strategic initiatives and grow its footprint in existing markets. Those two transactions netted $427 million. Most IASIS hospitals are in Arizona, Texas and Utah.
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