Thanks to its recapitalization last December and the acquisition of two new hospitals, Champion Healthcare Corp. turned a profit in the first quarter ended March 31.
The company reported net income of $1.4 million, or 8 cents per share, compared with a net loss of $1.3 million, or 31 cents per share, in the year-ago quarter. Revenues grew 76% to $50.7 million.
The recapitilization by the nine-hospital chain boosted earnings by eliminating preferred stock dividend payments. The company's financial results also benefited from the acquisition of 200-bed Salt Lake Regional Medical Center, Salt Lake City, and 101-bed Westwood Medical Center, Midland, Texas. The Midland facility replaced the company's 60-bed Physicians and Surgeons Hospital.
Last month, Champion announced it would merge with Paracelsus Healthcare Corp., Pasadena, Calif., creating a firm that operates 31 hospitals in 11 states.
In a related development, negotiations broke off between Champion and Columbia/HCA Healthcare Corp. for a facility exchange. Columbia would have acquired Champion's Lakeland Regional Hospital in Springfield, Mo., and Champion would have acquired Columbia's Poplar Springs Hospital in Petersburg, Va. Details about the termination weren't disclosed.