The nation's largest heart-hospital operator, MedCath Corp., Charlotte, N.C., saw its revenue grow 10.8% and adjusted admissions 9.1% in its third quarter ended June 30, as its industry prepared to emerge from a period of regulatory uncertainty.
MedCath, which has 12 heart hospitals, not only will face a new regulatory environment but also a new executive team. Earlier this week, the company announced that President and Chief Operating Officer Charles Slaton will take over from John Casey as chief executive Oct. 1. Casey will remain chairman. The company has begun a search for a replacement COO.
MedCath earned $2.7 million on revenue of $195.1 million in its third quarter, compared with net income of $1.4 million on revenue of $176.2 million in the year-ago quarter. Results from both quarters include the performance of two hospitals MedCath opened in 2004, which were far enough along in development to escape a federal moratorium on new specialty hospitals. The 18-month moratorium ended in June, and the CMS this week released new cardiac DRGs that had delayed approval of new specialty hospitals.