Iasis Healthcare Corp., Franklin, Tenn., said an investment group is working on a $1.4 billion buyout of the company expected to close by June 30, pending regulatory approvals. Iasis said the group is led by Texas Pacific Group and includes Iasis managers, JLL Partners -- Iasis' initial backer when the company was founded in 1999 -- and other current investors. Privately held Iasis said the deal will increase its access to capital, allowing it to expand its 15 hospitals and pursue acquisitions. On a related note, a May 3 Daily Dose item on Iasis' latest financial report incorrectly said the company spent 17.2% of revenue for the six months ended March 31 on medical malpractice claims. The expenditures were for medical claims filed by members of the company's Medicaid HMO in Arizona. In addition, the item mentioned a one-time gain of $3.6 million affecting Iasis' quarterly earnings but neglected to mention a one-time charge of $8.9 million for debt-issuing costs.
In other investor-owned hospital news, Ardent Health Services, Nashville, said it earned $6.1 million for its first quarter ended March 31, up from $2.6 million for the year-ago quarter. Adjusted admissions rose 9.2% at Ardent's seven acute-care and rehabilitation hospitals and 4.7% at its 20 behavioral-health hospitals. Bad-debt expense, as a percentage of net patient revenue, climbed to 9% from 7.3% in the year-ago quarter. Total revenue, consisting of net patient revenue, premium revenue and other revenue, rose 17.9% to $366.5 million. -- by Vince Galloro