Vanguard Health Systems, Nashville, said expanded services and flu cases drove volume increases at its hospitals, leading to a fourfold increase in profits for the quarter ended Dec. 31, 2003. Privately held Vanguard said it earned $8.9 million for its second quarter, compared with $2.1 million in the year-ago quarter. Revenue was up 65.4% to $442 million. The bulk of the revenue increase came with the addition, effective Jan. 3, 2003, of five-hospital Baptist Health System, San Antonio. Revenue at Vanguard's 11 same-store hospitals was up 8.8%. For the six months ended Dec. 31, 2003, Vanguard posted profits of $14.2 million on revenue of $851.9 million, compared with profits of $4 million on revenue of $535.2 million in the year-ago period. Same-hospital adjusted discharges increased 6.6% for the quarter and 4.1% for the six-month period. For both the quarter and the six-month period, bad debts rose as a percentage of revenue -- to about 7% for both fiscal 2004 periods, from about 5% in the year-ago periods. Vanguard owns or operates 16 hospitals. -- by Vince Galloro
Flu, more services behind Vanguard's higher profits
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