Capella Healthcare, a privately held chain, based in Franklin, Tenn., improved its top and bottom line during the third quarter as it invested in outpatient services and saw an improved payer mix.
The company reported net income of $4.7 million on $195.1 million in revenue (PDF) for the third quarter, compared with a net loss of $5.1 million on $184.8 million in revenue during the year-ago period.
Unlike some its for-profit peers, Capella's admissions declined 3.2% year over year, or 0.4% when adjusted for outpatient activity. But revenue per adjusted admission increased 3.4%. Emergency room visits also increased 5.6%.
Earlier this month, Capella entered into an agreement to add another hospital to its portfolio, 116-bed Carolina Pines Regional Medical Center in Hartsville, S.C. Community Health Systems needed to divest the hospital in order to receive antitrust approval for its January acquisition of Health Management Associates.
That transaction should be completed by year-end.
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