Universal Health Services reported a 19% increase in net income to $10.3 million, or 72 cents per share, for the first quarter ended March 31. That's compared with $8.6 million, or 60 cents per share, in the year-ago period. Revenues slipped less than 1% to $194.4 million. The first-quarter results were boosted by the sale of two acute-care hospitals by the King of Prussia, Pa.-based company late last year.
U.S. Surgical Corp. said last week that it lost $8.1 million, or 14 cents per share, in its first quarter ended March 31. In the year-ago period, it recorded a profit of $36 million, or 61 cents per share. Sales for the 1994 quarter fell 30.7% to $226 million. The Norwalk, Conn.-based company is a leading supplier of products for minimally invasive surgery. The company began using distributors last year, and it recorded unusually high sales in the first quarter of 1993 as distributors built inventories of its products, U.S. Surgical said. Earlier this year, it completed a $138 million restructuring in which it cut 1,600 jobs, or 20% of its work force (March 21, p. 8). U.S. Surgical said it expects to report a profit next quarter.
Tennessee's new Medicaid managed-care program may pay providers as much as 25% less than the cost of care because of a faulty calculation of the state's capitated payment rate, according to a report released last week by the National Association of Public Hospitals. Larry Gage, president of the NAPH, warned that the difficulties being encountered in Tennessee could happen in national reform "if managed care is implemented too hastily, designed primarily for cost-containment purposes, and targeted only to the poor."
David B. Skinner, M.D., president of 1,354-bed New York Hospital, is the newly elected chairman of the Greater New York Hospital Association. GNYHA represents 167 not-for-profit hospitals and nursing homes.
The New York State Department of Health is investigating security at Harlem Hospital Center after the arrest of a 34-year-old homeless man who was accused of raping another hospital patient, a 42-year-old comatose woman on respiratory assistance. Harlem Hospital Center, part of the New York City Health and Hospitals Corp., is conducting its own investigation.
Milwaukee-based CareNetwork said it would begin providing managed-care and social services to disabled Medicaid-eligible recipients under a three-year, $1.15 million agreement with the Milwaukee Center for Independence. The center provides community-based clinical and vocational rehabilitation services to about 2,000 people daily. The agreement with CareNetwork will affect about 3,000 eligible recipients in the first year of operation, a spokeswoman said. The program, which is the first of its kind nationally, is being funded by HCFA, she said.
Preferred Premier Care, a PPO serving New York and New Jersey, announced the appointment of a full-time president, Kathleen E. Borgard. Ms. Borgard, a registered nurse, most recently served as vice president and chief operating officer of the Medicare social HMO known as Elderplan and Metropolitan Jewish Geriatric Center's home health division. Since its creation last year by Premier Healthcare Alliance of New York, the PPO's network has grown to include 40 hospitals and nearly 5,000 affiliated physicians. It recently signed an exclusive agreement with the Principal Financial Group, a financial services company offering a full range of insurance and financial products.
Surgical Care Affiliates last week announced that it has been authorized to repurchase as many as 2 million shares of SCA common stock under certain market conditions. The company said the repurchased shares could be used for acquisitions, employee incentive plans and other corporate purchases. Nashville-based SCA, the nation's second-largest operator of outpatient surgery centers, now has approximately 39 million shares outstanding. The stock last week was trading for about $12 a share on the New York Stock Exchange.