Standard & Poor's Corp. has revised its outlook for Los Angeles-based Health Care Property Investors to stable from negative. The revision reflects the improving financial condition of National Medical Enterprises and certain underperforming assets of the real estate investment trust. In April, Standard & Poor's raised NME's senior rating to BB+ and removed the company from CreditWatch. NME guarantees the lease obligations of Tacoma, Wash.-based Hillhaven Corp. and Birmingham, Ala.-based HealthSouth Rehabilitation Corp. These operators account for 16% and 5%, respectively, of HCPI's revenues. In addition, some 8% of HCPI's revenues come from NME properties. HCPI has investments in 177 healthcare properties in 31 states. Standard & Poor's has given ratings of BBB and BBB+ on a variety of HCPI notes.
Physicians Health Services, a Trumbull, Conn.-based managed-care company, posted a 17% increase in net income, to $3 million, or 33 cents per share, for the second quarter ended June 30. That compares with net income of $2.6 million, or 28 cents per share, in the year-ago period. Revenues rose 2% to $71.8 million. For the first half of 1994, net income rose 21% to $5.7 million, or 61 cents per share, from $4.7 million, or 52 cents per share in the year-ago period. Revenues increased 2% to $142.4 million. Enrollment at the end of the second quarter rose 14% to 170,798. PHS owns the largest HMO in Connecticut and operates an HMO in New York's lower Hudson Valley area.
CareerStaff Unlimited, a Houston-based provider of temporary rehabilitation therapists, has raised $22.5 million in its initial public offering. The company's stock is now traded over the counter. CareerStaff, started in late 1990, has 11 offices and 600 occupational, physical and speech therapists on assignment. In 1993, the company reported a profit of $659,000 on revenues of $27.2 million.
Nellcor has won a four-year contract with Columbia/HCA Healthcare Corp. The Pleasanton, Calif.-based company will provide patient safety monitoring products, including pulse oximeters, to the 196 hospitals belonging to Louisville, Ky.-based Columbia. Terms weren't disclosed.
Healthcare Realty Trust is funding a $7.9 million expansion of Huebner Medical Center, an ambulatory-care center in San Antonio. It's part of South Texas Medical Center. The two-story, 63,459-square-foot expansion will house skilled-nursing beds, spinal injury-care beds and primary-care and specialty-care services. It will be leased to San Antonio SSP, an affiliate of Birmingham, Ala.-based Starr Sanders Johnson, a medical facilities development and management firm. The original three-story, 90,840-square-foot ambulatory-care center was acquired by the Nashville, Tenn.-based real estate investment trust in 1993.
Omega Healthcare Investors said net income for the second quarter ended June 30 rose 38% to $4.2 million, or 43 cents per share, from $3 million, or 46 cents per share, in the year-ago period. Operating revenues jumped 64% to $7.4 million, and funds from operations were up 56% to $5.5 million. For the six-month period, net income increased 21% to $4.2 million, or 88 cents per share, from $6 million, or 91 cents per share. Operating revenues were up 64% to $14.6 million, and funds from operations rose 34% to $9.7 million. The decline in per-share earnings for the second quarter and first half of 1994 reflects an increase in the number of outstanding shares. Omega, a real estate investment trust with headquarters in Ann Arbor, Mich., has investments in 94 healthcare facilities in 17 states.