Catholic Healthcare West, San Francisco, posted its first positive operating margin in six years, earning $51 million in fiscal 2003, which ended June 30, compared with a net loss of $54 million the year before. Patient revenue climbed 9% to $4.9 billion from $4.5 billion over the same period. The 41-hospital system in 1999 launched a sweeping corporate reorganization plan, which included eliminating 350 jobs, to reverse four years of losses that totaled more than $878 million. "In four years, starting with an annual operating loss of $310 million in 1999, CHW has undergone a remarkable third-of-a-billion dollar turnaround," said CHW President and CEO Lloyd Dean, who joined CHW in January 2000 after former chief Richard Kramer left under fire. As a result, Moody's Investors Service placed CHW on its watch list for a possible bond upgrade, potentially affecting $2.2 billion in outstanding debt, the ratings firm said. -- by Laura B. Benko
CHW posts first positive margin in years
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.
Recommended for You