Hospital companies reported a 15% increase in profits on a 5% increase in revenues in the first quarter of 1994, according to WDI Capital Markets.
The figures are part of WDI's quarterly analysis of 250 publicly held healthcare companies. The entire healthcare industry reported a 6.6% increase in profits on a 9.5% increase in revenues. The profit figures are adjusted for accounting adjustments, restructurings and write-offs.
Providers as a group did well, reporting a 22% increase in adjusted net income on a 12% gain in revenues, according to WDI, based in Hilton Head Island, S.C. Within that segment, earnings were up 41% in home healthcare, 39% in long-term care and 42% for managed care.
Pricing pressures continued to affect healthcare product companies. The medical devices group, which includes the struggling U.S. Surgical Corp., reported a 2% increase in adjusted earnings on 7% revenue growth. Pharmaceutical companies reported a 4% increase in adjusted earnings on a 10.3% boost in revenues.