Integrated Healthcare Holdings, Santa Ana, Calif., restated its financial results for the first two quarters of 2006 to correct for accounting errors. For the three months ended June 30, the four-hospital system posted a restated operating loss of $148,394 on revenue of $89.9 million. In August, it had reported operating income of $340,930 on revenue of $90.4 million. For the six months ended June 30, Integrated Healthcare reported a restated operating loss of $3.24 million on $176 million in revenue. It had previously reported a net loss of $2.42 million on revenue of $176.9 million. Following the restatement, the company had total assets of $133.34 million as of June 30, $1.59 million less than previously reported. Meanwhile, its accumulated deficit and stockholders deficiency totaled $70.48 million as of June 30, $1.43 million higher than previously reported.
Investor-owned Integrated Healthcare has been struggling financially since March 2005, when it acquired four Southern California hospitals from Tenet Healthcare Corp. But Integrated Healthcare President Larry Anderson dismissed speculation that the company was at risk of folding. He pointed out that on June 30, the company had $10.2 million in cash and cash equivalents, up from $7.8 million a year earlier. The company also reported positive EBITDA (earnings before interest, taxes, depreciation and amortization) for the first half of the year, he said. We took over hospitals that were substantially financially challenged; they were losing between $4 million and $5 million a month, Anderson said. But if you look at all our financial reports since the inception of the company, youll find that weve been improving continuously. Integrated Healthcares hospitals include 280-bed Western Medical Center and 178-bed Coastal Communities Hospital, both in Santa Ana; 280-bed Western Medical Center, Anaheim; and 71-bed Chapman Medical Center, Orange. -- by Laura B. Benko