Iasis Healthcare, Franklin, Tenn., said Hurricane Rita caused $4.8 million in roof and water damage to its 216-bed hospital in Port Arthur, Texas, depressing profits for the fourth quarter and fiscal year ended Sept. 30. Iasis said the damage at The Medical Center of Southeast Texas was less than its insurance deductible, but the company expects to receive insurance money for lost business. Iasis' profits rose 25.7% to $4.4 million in the quarter, from $3.5 million in the year-ago quarter, while revenue increased 4.4% to $373.5 million. The privately held company earned $40.6 million in the fiscal year, reversing a loss of $32.4 million in fiscal 2004 caused by the costs of its recapitalization by private equity firm Texas Pacific Group. Revenue was up 9.9% to $1.5 billion. Same-hospital adjusted admissions declined 0.6% for the quarter and 1.9% for the year, mostly because of a decline in inpatient admissions. Iasis operates 14 hospitals in five states. -- by Vince Galloro
Iasis says Hurricane Rita costs held down profits
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