Although revenue increased heavily in Houston-based University General Health System's third quarter, net income fell 39 percent to $1.2 million.
In a news release, UGHS Chairman and CEO Hassan Chahadeh, MD, attributed the losses to its hospital in Dallas. In December 2012, the system acquired its first new acute-care hospital, South Hampton Community Hospital in Dallas, to complement its main hospital in Houston. UGHS renamed the 111-bed SHCH as University General Hospital Dallas.
"While our UGH Houston hospital continues to perform well, our UGH Dallas hospital has struggled to achieve expected results, and we have implemented a strategic plan to improve results in the upcoming quarters," Dr. Chahadeh said.
For the three months ended Sept. 30, UGHS' total revenue increased 38 percent to $49.6 million. Operating income fell from $11.7 million in the same period in 2012 to $2.8 million last year.
UGHS recorded $127.2 million of total revenue in the first nine months of 2013, an increase of 51 percent. The system posted an operating loss of $1.8 million in the first nine months last year compared with an operating profit of $23.6 million in the same period of 2012. Overall, UGHS' net losses amounted to $14 million in the first nine months of 2013, compared with a $3.6 million net profit in 2012.
UGHS is a physician-owned, publicly traded health system. In addition to operating two acute-care hospitals, it owns several ambulatory surgery centers, diagnostic imaging centers, hospital outpatient departments and senior living facilities. UGHS also owns the Robert Horry Center for Sports & Physical Rehabilitation in Houston.
In November, reports surfaced that UGHS was attempting to buy Lakeway (Texas) Regional Medical Center.
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