BUSINESSFor-profits see more profitsHospitals get more revenue from higher prices and bigger volumes.By Cheryl Jackson, amednews staff. Nov. 19, 2001. Higher prices are helping the nation's for-profit hospital chains. And the companies are spending money to gain more market share -- expanding to woo baby boomers. HCA Inc., the largest U.S. hospital chain, reported a 12% third-quarter increase in operating profits. Net income rose 21%, and revenues grew 8.4%. Tenet HealthCare Corp. reported growth in revenue, net income and operating cash flow margins for its first quarter of fiscal year 2002, ended Aug. 31. Admissions rose 5.9%. Higher fees and admissions also helped Triad Hospital Inc., the third-largest U.S. hospital chain. It reversed losses of a year earlier and raised its 2002 earnings forecast. It reported net income of $6.5 million for the third quarter, compared with a $1 million loss for the same period last year. Triad bought Quorum in April, and analysts are looking for it to meet or exceed expectations for the next couple of years. Health Management Associates saw income grow 33% for the quarter ended in September. Net patient service revenue at HMA hospitals was up 11%. Contributing to the growth was a 3.5% increase in admissions and a 6.8% increase in surgeries. HealthSouth Corp., which provides outpatient surgery and rehabilitation care, saw net income rise 11% as a result of higher prices.
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Copyright 2001 American Medical Association. All rights reserved.
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