Thursday September 10, 5:22 pm Eastern Time
Columbia/HCA sets broad goals, probe hopes
NASHVILLE, Tenn., Sept 10 (Reuters) - Columbia/HCA Healthcare Corp., the world's largest
hospital firm, said Thursday that it has a broad goal of returning to annual earnings per share
growth of about 15 percent.
The company also said its objectives include growing annual net revenues at 4 to 6 percent.
In addition, the company said that chief executive Dr. Thomas Frist, in remarks made Wednesday, reiterated his hope that the
company will settle a long-running federal probe into its Medicare practices some time in the first quarter of 1999.
Shares in the hospital giant closed Thursday down 1 at 21-9/16, setting a new two-year low during the day of 21-1/16.
Columbia reported second-quarter earnings from continuing operations of $191 million, or 30 cents a diluted share,
excluding costs tied to restructuring and the federal probe. Including $18 million in probe and restructuring costs and results
from discontinued operations, Columbia earned $78 million, or 12 cents a share, on the quarter.
Those results fell short of the year-ago level of $385 million, or 58 cents a share, in continuing earnings.
Total revenue from continuing operations was $4.8 billion for the quarter ended June 30, roughly flat vs. a year ago.
Company spokesman Vic Campbell said that Columbia has ''a goal to be able to return to a growth company somewhere in
the 15, mid-teens area ... (and) to get the revenue growth to return to something in the 4 to 6 percent range.''
He said the company wants to achieve those broad goals without aggressively acquiring hospitals -- a stance that Frist has
taken since assuming control of the company last summer.
Under federal investigation since early 1997, Columbia is trying to settle its troubles with government agents, resolve
numerous lawsuits, shape a new management team and dispose of operations that Frist sees as superfluous.
Campbell said the company expects to divest about $3.5 billion worth of assets this year. Divestment program proceeds
have already exceeded $740 million in 1998.
Campbell also said Columbia is consolidating its physician practice management business, on which it had been budgeting
this year to show a $180-million loss.
''There is a consolidation under way in the physician practice management area ... Most of the back office stuff is located out
here in Brentwood, Tenn.,'' Campbell said.
regards
Neil |
