Triad Hospitals, Plano, Texas, reported a second-quarter profit, compared with a loss in the year-ago quarter, on higher volume and $31.2 million in proceeds from the sale of its 49% interest in seven ambulatory surgery centers to not-for-profit Banner Health, Phoenix. Triad earned net income of $58.9 million, or 72 cents per share, in the quarter ended June 30, compared with a loss of $5.2 million, or 7 cents per share, in the year-ago quarter. Revenue was up 12.2% to $1.21 billion. Adjusted admissions rose 0.5%.
For the six months, Triad earned net income of $125.1 million, or $1.55 per share, compared with $92.6 million, or $1.22 per share, in the year-ago period. Revenue rose 11% to $2.4 billion, and adjusted admissions were up 1.4%. The company said revenue grew despite a new discount policy that reduced the amount of revenue from uninsured patients. The company saw a corresponding drop in its bad-debt expense -- to 7.7% of revenue in the second quarter from 10.6% of revenue in the year-ago quarter. Without the discount policy, bad-debt expense would have edged up to 10.8% of revenue, Triad estimated. Triad operates 52 hospitals and nine ambulatory surgery centers in 15 states. -- by Vince Galloro