LifePoint Hospitals, Brentwood, Tenn., said its $1.7 billion acquisition of Province Healthcare Co. in April caused the company to incur pretax costs of $54.6 million that led to a second-quarter loss. LifePoint lost $7.1 million, or 13 cents per share, compared with profits of $18.7 million, or 48 cents per share, in the year-ago quarter. Revenue nearly doubled to $467.6 million. Profits in the six months ended June 30 were less than half those in the year-ago period -- $18.7 million, or 41 cents per share, compared with $42.6 million, or $1.08 per share. Revenue increased 53% to $743.5 million. With the acquisition of Province and other transactions, LifePoint owns or operates 52 hospitals, up from 30 in the 2004 quarter.
Meanwhile, Universal Health Services, King of Prussia, Pa., tripled its profits in the quarter, mostly thanks to a $108 million after-tax gain from the sale of its 81.5% interest in a French hospital operator. Universal said it continued to struggle in South Texas against competition from a physician-owned hospital and, more broadly, with bad-debt expense, which rose to 9.6% of revenue from 8.2% in the year-ago second quarter. The company earned $146.5 million, or $2.34 per share, compared with $48.3 million, or 78 cents per share, in the year-ago quarter. Revenue was up 9% to $990.1 million. In the six months, Universal earned $207.9 million, or $3.32 per share, compared with $94.5 million, or $1.52 per share, in the year-ago period. Revenue rose 10% to about $2.1 billion. The company owns or operates 24 acute-care and 44 behavioral-health hospitals.
And Iasis Healthcare, Franklin, Tenn., said it managed a profit despite volume declines, earning $10.5 million for its third quarter ended June 30 compared with a loss of $56 million in the year-ago quarter. The year-ago quarter included recapitalization costs of $71.7 million. Revenue was up 9.8% to $390 million. Admissions and adjusted admissions fell 4.8% and 2.3%, respectively. A spokeswoman said the company decided to focus on higher-margin businesses, closing some units and not renewing some managed-care contracts. Bariatric surgeries declined because some insurers changed eligibility requirements, and cardiac cases continued a shift to outpatient settings, she said. In the nine months, Iasis earned $36.2 million compared with a loss of $36 million in the year-ago period. Revenue increased 11.8% to $1.15 billion. Iasis owns or operates 14 acute-care and one behavioral-health hospital. -- by Vince Galloro