On the heels of its decision to be acquired by Tenet Healthcare Corp., OrNda HealthCorp didn't disappoint its proposed new owner, reporting a 45.5% increase in profits for its fourth quarter.
For the quarter ended Aug. 31, Nashville, Tenn.-based OrNda reported an increase in net income to $23.2 million, or 39 cents per share. That compares with net income of $16 million, or 34 cents per share, in the year-ago quarter. Revenues rose 14.2% to $553.9 million.
"Our strategy of creating comprehensive integrated delivery systems is clearly becoming more visible as further evidenced by our agreement to merge with Tenet," said Charles Martin, chairman, president and chief executive officer of OrNda.
During the quarter, OrNda closed the acquisition of three hospitals: 149-bed Cypress Fairbanks Medical Center in Houston, 66-bed Westside Hospital in Los Angeles and 375-bed Centinela Hospital Medical Center in Inglewood, Calif.
For the year, net income increased 40% to $99.9 million, or $1.73 per share. That compares with net income of $71.3 million, or $1.52 per share, in the year-ago period. Revenues rose 16.5% to $2.1 billion.
Meanwhile, Santa Barbara, Calif.-based Tenet hopes to close its $3.1 billion acquisition of OrNda in March of next year. The new company will operate 126 hospitals in 22 states (Oct. 21, p. 2).