Columbia/HCA Earnings Beat Forecasts
.c The Associated Press
NASHVILLE, Tenn. (AP) - Columbia/HCA Healthcare Corp.'s third quarter earnings rose 18 percent, excluding restructuring costs and legal fees related to a federal fraud investigation, as the nation's largest hospital chain benefitted from higher patient admissions.
Earnings from continuing operations were $155 million, or 27 cents per share, compared to $131 million or 20 cents per share a year ago. Results beat Wall Street forecasts by two cents, according to First Call/Thomson Financial.
Including the one-time costs, net income in the quarter was $138 million, or 24 cents per share, compared to $146 million, or 22 cents per share.
Revenues fell 15 percent to $3.9 billion from $4.6 billion. The decline reflects the sale or spin-off of about 100 hospitals and more than 20 ambulatory surgery centers since September 1998. Nashville-based Columbia now operates 214 hospitals and 84 ambulatory surgery centers.
The restructuring was prompted by a federal investigation into allegations the company systematically overcharged government health programs. Columbia officials are negotiating with the federal government in an attempt to end the 2 1/2-year-old investigation.
Two Columbia middle managers in Florida were convicted last summer of conspiring to defraud and defrauding several government health insurance programs.
Same facility admissions increased a healthy 2 percent in the quarter - the fourth straight quarter of such increases - and same facility revenue was up 5.8 percent.
Columbia officials said earnings were depressed by lower Medicaid fees, increased drug costs and higher bad debts.
Columbia shares were unchanged at $21.75 in early trading on the New York Stock Exchange.
For the first nine months of the year, Columbia earned $566 million, or 95 cents per share, compared to $421 million, or 65 cents per share a year ago. Revenues fell 11 percent to $12.7 billion from $14.3 billion. |
