Iasis Healthcare, Franklin, Tenn., said profits increased in its fourth quarter ended Sept. 30, but the company reported a loss for the year largely because of costs incurred in Texas Pacific Group's $1.4 billion acquisition of a majority stake in Iasis in May. Privately held Iasis earned $3.5 million in the quarter, up from $2 million in the year-ago quarter. Revenue rose more than 26% to $357.7 million. For the fiscal year, Iasis lost $32.4 million, compared with profits of $20.6 million in fiscal 2003. Revenue was up more than 27.4% to $1.39 billion. Iasis reported higher levels of bad debt for both the quarter and fiscal year, with bad debt reaching 13.3% of acute-care revenue for the quarter and 11.5% for the year.
Fourth-quarter adjusted admissions decreased 2.6% on a same-facility basis, but revenue per adjusted admission increased 6.1%. For the fiscal year, same-facility adjusted admissions fell 0.1%, although inpatient admissions were up 2.2%. Hurricane-related disruptions at Iasis' three Florida hospitals and closure of some underperforming skilled-nursing and obstetrics units hampered fourth-quarter volumes, a spokeswoman said. -- by Vince Galloro