Community Health Systems reported higher consolidated third-quarter results for its hospitals and Hallmark Healthcare Corp., an Atlanta-based hospital chain acquired by Community earlier this month.
Community reported both separate and combined financial results for the third quarter, even though its acquisition of Hallmark didn't close until this month, which is in Community's fourth quarter.
For the combined firms, Houston-based Community reported a 22% increase in net income to $4 million, or 26 cents per share, for the quarter ended Sept. 30, compared with $3.3 million, or 22 cents per share, in the year-ago period. Revenues grew 8% to $115 million.
For the nine months, the two hospital chains reported an 8% drop in profits to $14.6 million, or 94 cents per share, compared with $15.7 million, or $1.05 per share, in the year-ago period. Revenues were up 12% to $348.8 million.
The third-quarter results included $430,000 in after-tax savings from the merger. Community expects to save $10 million through the merger, half of which will come on the hospital level and half on the corporate level, said Deborah Moffett, the company's vice president of finance. Most of the additional savings will come in the fourth quarter and early 1995, she said.
Community now operates 38 hospitals in 16 states. Its shares began trading on the New York Stock Exchange under the symbol CYH. The company's common stock previously traded over the counter under the symbol CHSI.