U.S. Oncology, Houston, took a $27.6 million charge to transition its physician practice management contracts away from a net revenue model and partially as a result reported a fourth-quarter loss of $5.4 million and a year-end loss of $45.9 million. By comparison, the company earned $12.8 million in the 2001 fourth quarter and $46.3 million for all of 2001. Under net revenue contracts, group practices retain a fixed portion of net revenue before paying service fees to the company. Fourth-quarter revenue increased 10.6% to $554.3 million, and annual revenue rose 9.4% to $2.1 billion. U.S. Oncology operates 79 outpatient cancer centers and has nine additional cancer centers under development. Meanwhile, Renal Care Group, Nashville, said fourth-quarter net income rose 20.7% to $24.9 million and year-end net income increased 19.7% to $92.4 million. Revenue grew 19.3% for the quarter and 19.6% for the year to $243 million and $903.4 million, respectively. The company operates about 270 outpatient dialysis centers and provides acute dialysis services under contract to more than 120 hospitals. -- by Julie Piotrowski
Change in contract model costs U.S. Oncology
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