Community Health Systems, Nashville, Tenn., posted a 5% increase in net income for the first quarter ended March 31, to $12.7 million, or 63 cents per share, from $12.1 million, or 61 cents per share, in the year-ago quarter. Revenues grew 9% to $155.2 million. The results included a $180,000 operating loss from four Florida hospitals Community sold to Columbia/HCA Healthcare Corp. in March. Community operates 38 hospitals in 18 states.
The Cancer Institute of New Jersey, a New Brunswick-based outpatient cancer treatment and research center, added three-hospital Atlantic Health System to its network of 11 hospitals. Atlantic Health, which includes Morristown (N.J) Memorial Hospital; Overlook Hospital in Summit, N.J.; and Mountainside Hospital in Montclair, N.J., will pay a fee to join the network, said William N. Hait, M.D., the cancer institute's director. He said the amount of the fee is "strictly confidential." It pays for providing education and research services to network hospitals. Under the contract, Atlantic Health patients will have access to the institute's 105 cancer specialists and clinical trials of various therapies. The institute opened in 1993 and now logs more than 10,000 outpatient visits a year.
Harvard (Ill.) Community Memorial Hospital has signed a 10-year affiliation agreement with Rockford (Ill.) Health System. The 78-bed hospital chose Rockford, which includes 451-bed Rockford Memorial Hospital, over four other systems in northern Illinois. As part of the deal, Rockford will pay nearly $1.4 million for the completion of a 13,000-square-foot clinic in Harvard.
Two Nassau County, N.Y., hospitals have agreed to operate jointly under a new parent company. The alliance of South Nassau Communities Hospital, Oceanside, and Winthrop-University Hospital, Mineola, does not involve a merger of assets. However, the board of the new parent organization, called Winthrop-South Nassau University Health System, will approve each hospital's budget and major capital expenditures. Administrators are working on a plan to capitalize the new parent company. The 1,020-bed Winthrop-South Nassau system will be directed by a board with equal representation from both institutions and led by co-chief executive officers Martin J. Delaney of Winthrop and Michael Rodzenko of South Nassau. There are no plans to move to a single CEO or eliminate other duplicative administrative positions, said John P. Broder, Winthrop's vice president of external affairs.
Integrated Health Services reported a 2% drop in net income for the first quarter ended March 31, to $13.8 million, or 54 cents per share, from $14.1 million, or 53 cents per share, in the year-ago quarter. Revenues rose 19% to $327.6 million. The company said its revenues from higher-margin specialty services increased 25% to $219.5 million. Specialty services now constitute 67% of total company revenues. During the quarter the company also signed a five-year exclusive capitated contract with Las Vegas-based Sierra Health Services. IHS will provide post-acute care to 136,000 enrollees of Health Plan of Nevada, a Sierra subsidiary. IHS, based in Owings Mills, Md., operates more than 600 locations in 40 states.
HMO Group, an alliance of group-practice health plans, awarded funding to 14 of its member HMOs to target tobacco use by adolescents. The funds come from a $200,000 grant from the Robert Wood Johnson Foundation. The plans that received funding submitted proposals to improve tobacco control and prevention programs at primary-care practices and develop provider links with community resources aimed at smoking cessation. HMO Group will identify and share information about the best clinical practices in use by member plans with programs that reduce tobacco use. The alliance represents 18 HMOs serving more than 7 million enrollees in 30 states.