Merger costs, new acquisitions and various litigation settlements contributed to Coram Healthcare Corp.'s negative third-quarter earnings.
For the quarter ended Sept. 30, Coram recorded a net loss of $121.2 million, or $3.14 per share, compared with net income of $10.2 million, or 26 cents per share, during the year-ago period. Revenues dropped 8% to $110.2 million.
For the nine months, Coram re-corded a net loss of $127 million, or $3.30 per share, compared with net income of $33.1 million, or 86 cents per share, in 1993. Revenues declined 4% to $336.9 million.
The unusually large decline in earnings during the third quarter stemmed from a previously announced special charge of $147.3 million resulting from the merger and restructuring of the four home infusion companies that now make up Coram: T2 Medical, Curaflex Health Services, HealthInfusion and Medisys.
In addition, the third quarter included $6 million in costs associated with various litigation settlements stemming from Coram's formation, as well as a $17.3 million one-time reserve for uncollectible receivables.
Coram Healthcare is the nation's second-largest provider of alternate-site healthcare delivery services, including ambulatory and home infusion therapies, disease-specific outpatient care, and other services.