Iasis Healthcare plans to switch its hospitals and health facilities to the Cerner Corp. Millennium electronic health-record platform. The project, which will cost a total of $50 million, will be completed by March 2018, Iasis CEO Carl Whitmer said Tuesday during the company's fiscal year-end earnings call.
Spending on the project in fiscal 2016 could top $35 million as the 17-hospital system updates from a McKesson Corp. records system, Whitmer said.
Whitmer and CFO John Doyle declined to take questions on the call because the company, which is predominantly owned by private-equity firm Texas Pacific Group, is in a quiet period in advance of a planned initial public offering of common shares. Franklin, Tenn.-based Iasis filed its shelf registration in February to raise up to $100 million in the IPO.
Doyle was not available for an interview.
In its fiscal fourth quarter ended Sept. 30, Iasis announced (PDF) a 10.9% increase in revenue to $716.6 million from $646 million in the same quarter last year.
Adjusted earnings before income taxes, depreciation and amortization totaled $59.4 million in the quarter compared with $58.7 million in the prior-year quarter. EBITDA is often used with growth companies as a measure of earnings performance.
In the quarter, acute care revenues grew 5.5% vs. the prior-year period, while Iasis' growing managed care business saw its revenue jump 23.5% from signups across its managed Medicaid, Medicare and health insurance exchanges plans, the company announced.
For the fiscal year, adjusted EBITDA totaled $253 million, a 5.5% increase over the $239.8 million posted in 2014. Revenue in 2015 reached $2.8 billion vs. $2.5 billion last year.