Paracelsus Healthcare Corp., which recently filed for bankruptcy protection, nearly tripled its net loss in its third quarter.
The Houston-based, for-profit chain, which operates 10 hospitals, last week reported a net loss of $11.5 million, or 20 cents per share, in the quarter ended Sept. 30, compared with a net loss of $4 million, or 7 cents per share, during the 1999 quarter.
The company reported net revenue of $93.2 million, a 33% decline from last year's $138.2 million.
Paracelsus filed for Chapter 11 bankruptcy protection on Sept. 15 in U.S. Bankruptcy Court in Houston (Sept. 25, p. 2). Paracelsus' reorganization plan has yet to be approved by its creditors or by the court, but the company has said the holders of a majority of notes on which Paracelsus defaulted support its reorganization plan, subject to certain undisclosed conditions.
As part of its reorganization plan, Paracelsus has proposed offering retention bonuses totaling $1 million to its key managers.
In its quarterly report to the Securities and Exchange Commission, the company also noted that it's in settlement talks with the federal government to resolve pneumonia-related coding errors that the government alleges resulted in Medicare overpayments of up to $1.3 million to Paracelsus. Although it has not announced a settlement yet, Paracelsus has set aside $480,000 to be used for potential settlement costs.