Carolinas HealthCare System, Charlotte, N.C., reported a loss of $466.4 million for its nine owned hospitals on revenue of $3.01 billion for the year ended Dec. 31, 2008. That compares with net income of $194.3 million on owned hospitals in 2007, with revenue of $2.5 billion. Carolinas acquired NorthEast Medical Center, Concord, N.C., in July 2007. The 418-bed hospital is now known as Carolinas Medical Center-Northeast.
The 2008 loss was primarily driven by a $538.6 million decline in the value of its investment portfolio, but Carolinas also said patient volume declined and interest expense rose. Higher rates on its variable-rate debt and the costs of replacing some of that debt with fixed debt cost the system a total of $8.8 million in 2008, Carolinas said.
For its three leased hospitals, Carolinas reported a loss of $31.1 million. The value of the investment portfolios of the three hospitals declined $36.4 million. Revenue was $435 million. For the total enterprise, which includes the owned and leased hospitals and its contract-management business, Carolinas recorded a loss of $551.5 million for 2008 with a $638.7 million drop in the value of its investment portfolio, on revenue of $4.51 billion.