Ramsay Health Care, a New Orleans-based chain of 17 psychiatric hospitals, reported a 2% increase in net income for the second quarter ended Dec. 31, 1993, earning $475,000, or 5 cents per share, compared with net income of $467,000, or 6 cents per share, in the year-ago period. Revenues grew 4% to $32.6 million. For the six-month period, Ramsay reported a 65% drop in net income to $1.1 million, or 11 cents per share, compared with $3.1 million, or 39 cents per share, in the year-ago period. Revenues grew 3% to $62.7 million. The six-month results included a first-quarter charge of $2.35 million for a change in accounting for income taxes.
Transitional Care Ventures, a joint venture between Ramsay Health Care and Integrated Health Services, has opened its first subacute-care unit in San Antonio, Texas. Last year, Ramsay, a New Orleans-based psychiatric hospital chain, formed Transitional Care as a joint-venture company with Chi Group, an Ann Arbor, Mich.-based firm, to operate subacute units. The Chi subsidiary that operates subacute units recently was purchased by Integrated, an Owings Mills, Md.-based firm that operates some 2,300 subacute-care beds. Ramsay now owns a 60% interest in Transitional Care, and Integrated holds the remainder. Transitional Care's first venture is a 13-bed unit in Ramsay's Mission Vista Hospital in San Antonio. Transitional Care also operates an outpatient rehabilitation center at the hospital.
Community Psychiatric Centers, Laguna Hills, Calif., has declared a special, one-time dividend of 1 cent per share payable March 15 to shareholders of record March 1. CPC, a chain of 60 psychiatric and subacute-care facilities, suspended its regular quarterly dividend in April 1993 to finance the expansion of Transitional Hospitals Corp., its Atlanta-based subsidiary that develops and operates long-term critical-care and subacute hospitals. "Our board recognized that we have loyal, longtime shareholders whose patience and support we have valued during a severe downturn in the psychiatric industry," said Richard Conte, CPC's chairman and chief executive officer.
MHM Extended Care Services, a subsidiary of McLean, Va.-based Mental Health Management, has been selected to provide mental health and mental retardation rehabilitation services to elderly Georgia residents on Medicaid. The contract, which was awarded by the state and must be approved by HCFA, is valued at $12.5 million over 31/2 years. Mental Health Management recently established the MHM subsidiary when it acquired HCI Services, an Atlanta-based firm that provides medical and behavioral health services to 625 long-term-care facilities in nine states.
Advanced Technology Laboratories will acquire Ambler, Pa.-based ultrasound manufacturer Interspec in a stock swap. Bothell, Wash.-based ATL, a leader in the ultrasound market, will trade about 2.4 million of its shares for Interspec's 6.3 million shares outstanding, making the deal worth $39 million. The merger, if approved by stockholders and regulatory authorities, will create a $365 million company. Earlier this month, ATL reported that it lost $5.1 million, or 46 cents per share, in the year ended Dec. 31, 1993, compared with a gain of $7.4 million, or 67 cents per share, in 1992. Revenues dropped 5.9% to $323.7 million.