Charter Medical Corp. has agreed to repay $29.8 million to five insurance companies, pushing the psychiatric hospital company into a loss for the second quarter ended March 31.
The recoupment by insurers is the second Charter has agreed to in the past six months. Under threat of legal action, the Atlanta-based company last fall agreed to repay $31 million to several insurers (Nov. 21, 1994, p. 15).
Charter spokesman Robert Mead declined to identify the insurers involved in the latest settlement.
In addition to the settlement, Charter reported other nonoperating charges, including $7.8 million in charges related to the company's bankruptcy reorganization in 1992.
For the quarter, the 110-hospital chain reported a net loss of $15.1 million, or 53 cents per share, compared with net income of $1.1 million, or 4 cents per share, in the year-ago period. Revenues rose 41% to $299.8 million.
The revenue increase reflects last year's acquisition of 40 psychiatric hospitals from Tenet Healthcare Corp., formerly called National Medical Enterprises.