Iasis Healthcare, the hospital chain that recently filed to go public, reported an improvement in operating performance in its fiscal first quarter. However, its decision to exit the Nevada and Florida markets depressed its bottom line.
For the quarter ended Dec. 31, the Franklin, Tenn.-based company reported $16.2 million in operating income before accounting for discontinued operations and income taxes, a significant increase over the $3.2 million in operating income in the prior-year period.
Its revenue increased 15.2% to $686.7 million compared with the prior-year period's $595.9 million. Most of the increase came from its health insurance business, but acute-care revenue grew 4.6%.
Iasis completed the sale last month of North Vista Hospital in North Las Vegas, to Prime Healthcare Services. In October 2013, the company also divested three Florida hospitals to HCA.
When accounting for the discontinued operations, its net income declined to $5.1 million in the quarter compared with $5.2 million in the prior-year period.
Healthcare reform continued to bring in more paying patients. The chain reported during an earnings call that uninsured admissions declined 67% year over year in its three Medicaid expansion states. In comparison, uninsured admissions declined only 10.5% in its three states that did not expand Medicaid.
Iasis saw an overall 3.1% increase in admissions, and a 4% increase in admissions adjusted for outpatient activity.
Self-pay admissions accounted for 6.2% of the total, a decrease from 8.1% in the prior-year period. Self-pay emergency room visits declined to 17% of the total, down from 21% in the year-ago period.
Iasis' hospitals also continued to see more patients with health plans purchased on a health insurance exchange, and the acuity of these patients' conditions was 20% higher than among its managed-care patients.
The chain, however, continued to see the most significant growth from its managed-care business, where revenue increased 44.5% year over year. The number of lives it covers increased 75.4% to 337,000.
The company did not take questions on the earnings call, citing the quiet period in the lead up to its initial public offering.
Iasis this month filed to be listed on the New York Stock Exchange. Current private equity owner TPG Global intends to retain a majority stake.
The past few years have been good to healthcare stocks because the Patient Protection and Affordable Care Act has brought in additional patients and a better payer mix. HCA, the country's largest hospital chain by revenue, was added to the S&P 500 index last month after two consecutive years when shares rose more than 50%.
Follow Beth Kutscher on Twitter: @MHbkutscher
