Vanguard Health Systems, Nashville, said pretax earnings for the quarter ended Dec. 31, 2002, were up nearly 70%, but its reported net income was flat with the year-ago quarter's figure because Vanguard paid much more in taxes in the recent quarter. Vanguard earned about $2.1 million in the second quarters of both fiscal 2003 and 2002. Revenue rose 19.8% to $267.3 million.
Privately held Vanguard paid only $10,000 in taxes for fiscal 2002's second quarter because the company had tax credits related to net losses incurred in previous years. For 2003's second quarter, Vanguard paid $1.8 million in taxes. Vanguard said same-hospital adjusted discharges, which account for both inpatient and outpatient volumes, rose 4.6% for the quarter. For the six months ended Dec. 31, Vanguard earned $4.5 million, compared with a $2 million loss in the year-ago period. Revenue was up 24.3%, to $535.2 million. Vanguard owns and operates 15 hospitals, including the five hospitals it acquired last month by purchasing an 80% interest in Baptist Health System, San Antonio, for $295 million. -- by Vince Galloro