HCA, Nashville, said that the sale of its Geneva, Switzerland, hospitals and a tax gain from prior periods offset higher interest and bad-debt expenses in the third quarter. HCA reported net income of $300 million for the quarter ended Sept. 30, compared with net income of $240 million in the year-ago quarter. Revenue increased 5.7% to $6.57 billion. For the nine months, net income was $596 million, down from $914 million in the year-ago period, with revenue increasing 5.2% to $19.98 billion.
HCA said it recorded a gain of $399 million on the sale of the two Geneva hospitals in July. The company also realized an $85 million benefit in its tax provision for the quarter based on new information that HCA has learned about its tax returns in previous years. Interest expense, because of the companys $33 billion leveraged buyout in November 2006, nearly tripled to $560 million from $200 million in the year-ago quarter. Bad-debt expense for the quarter, as a percentage of net revenue, increased to 11.8% from 10.9% a year ago.
HCA also reported lower figures in the quarter for admissions and equivalent admissions on a same-facility basis, 1.6% and 0.5%, respectively. The company said that 1 percentage point of the admissions decline is attributable to one-time factors, most notably, to its rejection of a new contract with Sierra Healthcare in Las Vegas. HCA owns or operates 170 hospitals and 107 free-standing surgery centers. -- by Vince Galloro
What do you think? Post a comment on this article and share your opinion with other readers. Submit your letter to Modern Healthcare Online at [email protected]. Please be sure to include your hometown and state, along with your organization and title.