Iasis Healthcare, a privately held 15-hospital chain, made nearly $6.2 million for the three-month period ended March 31, according to its first-ever quarterly earnings report issued last week.
That compares with a $1.6 million profit during the year-ago quarter. There was a net loss of $452,000 to common shareholders after the company recorded a $6.6 million dividend charge on its preferred stock.
Net operating revenue was $223.7 million for the quarter, up from $47.8 million in the year-ago quarter.
The Franklin, Tenn.-based chain, founded in 1998, bought 10 hospitals from Tenet Healthcare Corp. and five from Paracelsus Healthcare Corp. in two separate deals valued at a combined $800 million last October. The Paracelsus hospitals are included in the 1999 earnings; the Tenet hospitals are not.
The hospitals are in Salt Lake City--where Iasis reopened a 118-bed hospital called Rocky Mountain Medical Center last month--and in Phoenix, Tampa-St. Petersburg, Fla., and Texas. The company also operates four ambulatory surgery centers and a Medicaid managed health plan that covers 37,000 people in Arizona.
"We've done a substantial amount of work creating the infrastructure necessary to grow our company going forward," said Wayne Gower, Iasis president and chief executive officer.
The company expects to be ready to make acquisitions in several months.
Iasis received an undisclosed amount of start-up capital from Clayton Associates, a venture capital firm run by former HealthTrust CEO R. Clayton McWhorter (See related story, p. 22). Before buying its 15 hospitals, Iasis also received $200 million in funding from Joseph Littlejohn & Levy, a New York venture capital firm.