Net income at Vanguard Health Systems soared in its recent earnings report, as the Nashville, Tenn.-based for-profit hospital operator posted a profit of $19.3 million in the fourth quarter of its 2012 fiscal year and a profit of $57.3 million for the entire FY 2012.
Vanguard's lofty profit totals were impacted by several events, including a lower-than-expected effective income tax rate and its acquisition of Harlingen, Texas-based Valley Baptist Health System in September 2011. Vanguard's 9 percent effective tax rate resulted from changes to Michigan tax laws and other deferred tax asset valuation adjustments. Vanguard posted a loss of $11 million in the fourth quarter of 2011 and a loss of $12 million for all of FY 2011.
Fourth quarter revenue at Vanguard rose 3.8 percent from $1.4 billion to $1.45 billion, again due in part to the added volumes from Valley Baptist Health System. In FY 2012, Vanguard's revenue skyrocketed almost 30 percent, from $4.58 billion last year to $5.95 billion this year.
Vanguard's adjusted EBITDA reached $140.8 million in the quarter ended June 30, 2012, and $575.7 million on the year. Also as of June 30, Vanguard had more than $455.5 million in cash and total debt of $2.71 billion.
Vanguard also released same-hospital operating statistics. Inpatient and outpatient surgeries fell 1.7 percent and 1.6 percent, respectively, on the year. Emergency room visits were up 3.6 percent, though, and net patient service revenue increased 5.9 percent.
Vanguard also released its outlook for its next fiscal year, ending June 30, 2013. It expects to post between $62 million and $77 million in profit, while adjusted EBITDA is expected to sit between $550 million and $575 million.
Vanguard's lofty profit totals were impacted by several events, including a lower-than-expected effective income tax rate and its acquisition of Harlingen, Texas-based Valley Baptist Health System in September 2011. Vanguard's 9 percent effective tax rate resulted from changes to Michigan tax laws and other deferred tax asset valuation adjustments. Vanguard posted a loss of $11 million in the fourth quarter of 2011 and a loss of $12 million for all of FY 2011.
Fourth quarter revenue at Vanguard rose 3.8 percent from $1.4 billion to $1.45 billion, again due in part to the added volumes from Valley Baptist Health System. In FY 2012, Vanguard's revenue skyrocketed almost 30 percent, from $4.58 billion last year to $5.95 billion this year.
Vanguard's adjusted EBITDA reached $140.8 million in the quarter ended June 30, 2012, and $575.7 million on the year. Also as of June 30, Vanguard had more than $455.5 million in cash and total debt of $2.71 billion.
Vanguard also released same-hospital operating statistics. Inpatient and outpatient surgeries fell 1.7 percent and 1.6 percent, respectively, on the year. Emergency room visits were up 3.6 percent, though, and net patient service revenue increased 5.9 percent.
Vanguard also released its outlook for its next fiscal year, ending June 30, 2013. It expects to post between $62 million and $77 million in profit, while adjusted EBITDA is expected to sit between $550 million and $575 million.
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