Vanguard Health Systems scales back earnings estimate

Vanguard Health Systems knocked $12 million off the top end of its forecast for its current fiscal year after tallying lackluster earnings for the quarter ended March 31.

The publicly traded hospital chain, like most of its peers, saw revenue and income drop with a decline in pattient volume.

Vanguard, based in Nashville, earned $21.3 million on $1.5 billion in revenue in the third quarter of its fiscal 2013, which ends June 30. Income was down more than 50% from the same quarter last year. Revenue fell $84.4 million.

Like other hospital companies reporting results in recent days, Vanguard noted that its revenue for the same quarter last year was boosted by the CMS rural-floor settlement, which compensated the industry for miscalculated payments under the Balanced Budget Act of 1997. Vanguard's share was $40.6 million.

Still, discharges dropped 3.2% and adjusted discharges, reflecting outpatient utilization, dropped 1.8%.

Vanguard now says it expects to earn $59 million to $65 million in fiscal 2013, down from its previous outlook of $62 million to $77 million.