Iasis Healthcare, Franklin, Tenn., posted higher patient volume and acuity and controlled labor expenses well into its fiscal 2009 fourth quarter, which ended Sept. 30, but a write-down of its Florida hospitals led to a loss for the quarter.
Iasis posts higher patient volume, $29.9 million loss
Iasis recorded a loss of $29.9 million for the quarter, compared with a profit of $519,000 in the year-ago quarter. For the fiscal year, net income was $28.1 million, compared with profits of $36.3 million in fiscal 2008. Revenue for the quarter was $620.1 million, up 20.3%. For the fiscal year, revenue was $2.36 billion, up 14.3%. Revenue from the company's managed Medicaid plan in Arizona increased sharply in both the quarter and the year, Iasis said.
Labor expenses as a percentage of acute-care revenue was 38.9%, down a full 3 percentage points from the year-ago quarter, thanks to health benefit savings from a new third-party administrator, said Carl Whitmer, chief financial officer. Admissions and adjusted admissions rose 4.2% and 4.7%, respectively, compared with fiscal 2008's fourth quarter. Acuity, as measured by case-mix index, rose 5.2%, Iasis said.
The company's three Florida hospitals continue to generate operating income, but the upside of these facilities is lower than the company believed because of certificate-of-need restrictions, said David White, chairman and CEO.
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