MedCath Corp., Charlotte, N.C., said adjusted admissions rose 44%, same-facility adjusted admissions 12.8% and revenue 31% -- to $144 million -- for its fourth quarter ended Sept. 30, but the company still reported a net loss of $62.1 million, or $3.46 per share. It cited higher supply costs and bad debt, projected ramp-up expenses at new hospitals and the impairment of goodwill. By comparison, MedCath earned $1.4 million, or 8 cents per share, in the fourth quarter of 2002. MedCath said the impairment of goodwill, primarily from when the company went private in 1998, reduced net income by $58.9 million. Medical supply expenses increased 48% to $38.4 million, while bad debt more than doubled to $10 million. The company said its earnings also were hurt by delayed debt offerings, debt restructuring and a fiscal intermediary's new capital cost reimbursement methodology. For the fiscal year, MedCath lost $60.3 million, or $3.35 per share, compared with net income of $24.3 million, or $1.34 per share, in fiscal 2002. Net revenue increased 13.7% to $543.0 million. MedCath owns and operates 11 heart hospitals and is developing two additional hospitals. -- by Julie Piotrowski
Admissions boom, but MedCath reports loss
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