The Federal Trade Commission has made final a proposed consent agreement that requires Healthtrust to sell one of the three Utah hospitals it bought from South Bend, Ind.-based Holy Cross Health System in August. The agreement settles charges that the acquisition would have given the Nashville, Tenn.-based chain illegal control of seven hospitals in the same market (July 18, p. 20). The settlement requires Healthtrust to sell 200-bed Holy Cross Hospital in Salt Lake City within six months.
Lutheran Health Systems has agreed to lease 251-bed North Colorado Medical Center in Greeley, Colo., for 20 years. Terms of the agreement were not disclosed. It takes effect Jan. 1, 1995. LHS, a Fargo, N.D.-based chain of about 30 hospitals, operates three hospitals in northeastern Colorado.
Vencor, a Louisville, Ky.-based chain of 33 intensive-care hospitals, reported a 33% increase in net income to $8.3 million, or 45 cents per share, for the third quarter ended Sept. 30, compared with net income of $6.2 million, or 34 cents per share, in the year-ago period. Revenues were up 43% to $103.5 million. For the nine months, profits were up 34% to $21.5 million, or $1.18 per share, compared with $16.1 million, or 88 cents per share, in the year-ago period. Revenues grew 43% to $289 million.
Richard Scott, president of Columbia/HCA Healthcare Corp., will be a featured speaker at the second annual National Interfaith Healthcare Leadership Conference this week in Phoenix. The group was formed last year by nine multidenominational healthcare systems. Mr. Scott will join a five-member panel of executives to discuss the survival of religious healthcare providers and what they will look like under reform. Mr. Scott has said he believes tax exemptions for not-for-profit hospitals will become a thing of the past under universal coverage and healthcare reform.
Net income at Baxter International for the third-quarter ended Sept. 30 grew 10.3% to $149 million, or 53 cents per share, from $135 million, or 49 cents per share, in the year-ago period. Sales increased 3.9% to $2.3 billion. The Deerfield, Ill.-based company said it continued to reduce sales and administrative expenses, but that its U.S. sales growth still is slowing. Future growth, it said, will fall below earlier expectations. For the nine months ended Sept. 30, net income rose 7.6% to $424 million, or $1.52 per share, from $394 million, or $1.17 per share, in the year-ago period. Sales rose 5.2% to $6.8 billion.
HHS has awarded Lewin-VHI, a Fairfax, Va.-based healthcare consulting firm, a contract to conduct the first federal government study of sub-acute care. The eight-month, $196,900 study will evaluate which patients benefit from subacute care and which providers are in the best position to serve specific subacute patients. It also will evaluate the quality and costs of subacute care.
In a significant expansion in Florida, Foundation Health Corp. will acquire Community Medical Plan of Hallandale and several affiliated medical centers for an undisclosed amount in cash. CMP is the third-largest Medicaid health plan in Florida, serving 25,000 beneficiaries. Rancho Cordova, Calif.-based Foundation has a start-up HMO in Orlando, Fla., and its acquisition of CareFlorida Health Systems, a Miami-based commercial and Medicare HMO, was expected to close by November. Foundation also has HMOs in California, Louisiana and Texas; applications in Alabama and Oklahoma; and other pending acquisitions in Arizona, Utah and Colorado.