Bon Secours Health System, Marriottsville, Md. -- which previously revealed that the former chief financial officer of a Michigan subsidiary had overstated earnings -- released fiscal 2003 financials and revised 2002 figures. The 24-hospital system said net income fell 70% to $14.8 million on revenue of $2.5 billion in fiscal 2003, which ended Aug. 31. It blamed the decline on the early retirement and restructuring of debt. The system reduced its 2002 net income by 27% to $48.7 million to reflect the discovery of financial misstatements at Bon Secours Cottage Health Services in Grosse Pointe, Mich. Net revenue for 2002 was lowered by about $5 million to $2.3 billion. After a three-month investigation, Bon Secours' audit committee determined that the Michigan hospital's earnings were deliberately overstated. The Securities and Exchange Commission reportedly has begun an informal inquiry into the matter, and the U.S. attorney's office in Baltimore also is investigating. -- by Patrick Reilly
Bon Secours revises financials after investigation
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