News in brief - Nov. 21, 2005

Tenet blames Katrina for loss - Nighthawk Radiology makes acquisition - U.S. CEOs fret about health costs - KC system offers online price list - Hospital company forms

Tenet blames Katrina for loss

Blaming the destructive impact of Hurricane Katrina, Tenet Healthcare Corp. posted a third-quarter loss of $408 million, its 11th consecutive quarterly loss.

The Dallas-based hospital chain said the loss compared with a net loss of $70 million for the same period a year earlier. Revenue dropped to $2.39 billion from $2.43 billion.

Trevor Fetter, Tenet's president and chief executive, said in prepared remarks that Hurricane Katrina had a devastating impact on six of the company's hospitals in Louisiana and Mississippi. He said hurricane-related costs amounted to $241 million in pre-tax dollars in the third quarter, with $201 million of that as a non-cash impairment charge. Additional costs as well as additional insurance recoveries were expected in coming months, he said.

Nighthawk Radiology makes acquisition

Nighthawk Radiology Holdings Inc., which provides after-hour interpretation services using American radiologists in Australia and Switzerland, has acquired American Teleradiology Nighthawks.

Coeur D'Alene, Idaho-based Nighthawk Radiology said that the acquisition will enable it to increase its client base by acquiring contracts held by Roanoke, Va.-based American Teleradiology, which provides after-hour reading services to hospitals by radiologists based in the United States.

Terms of the deal were not disclosed. Nighthawk recently filed with the Securities and Exchange Commission to sell up to $86.3 million of its stock to the public.

U.S. CEOs fret about health costs

A global survey of chief executives by the Conference Board finds that the rising cost of employee health care is one of the major concerns of CEOs in the United States. Meanwhile, the same issue is among the lowest priorities for CEOs in Europe and Asia.

According to the Conference Board, a nonprofit organization focusing on business leadership issues, U.S. CEOs rank health costs seventh among their top 10 challenges. The same issue ranked only 52nd when accounting for all 658 CEOs in 40 countries surveyed.

The survey took place in July and August.

KC system offers online price list

A hotline offering patients estimates of what their care will cost at a health system in Kansas City is putting a new twist on the recent push to make hospitals more transparent about what they charge.

Saint Luke's Health System, which operates nine hospitals, rolled out its Price Line service this year. Rates for all anticipated hospital services are quoted for managed care patients and the uninsured alike. Physician fees are not included.

Industry observers say the move is part of an overall trend among hospitals to help consumers be more informed about the price of the health care services they receive, particularly with health savings accounts, in which patients take a larger responsibility for their bills, on the rise.

The hotline, which is operated by the Saint Luke's account service unit, has logged about 500 calls since its debut in March.

Physician fees are not included because, the hospital said, it doesn't track that information.

Hospital company forms

A longtime hospital industry veteran has launched a new company dedicated solely to partnering with physicians to acquire and operate full-service acute care hospitals.

Joshua Nemzoff's StoneBridge Healthcare LLC is dedicated to pursuing these types of "whole hospital" joint ventures with physicians.

Although such business arrangements have been used in health care for many years, anecdotally they appear to be much less common among acute care hospitals than other health care entities such as ambulatory surgery centers or specialty hospitals.

Nemzoff said StoneBridge's joint ventures will give physicians control of the clinical side of acute care hospitals while leaving the business management side to experienced hospital executives.

The company, based in New Hope, Pa., was pursuing hospitals with about 200 beds or more. At press time, it had not acquired any facilities. Physicians would control 20% to 49% of the equity stake in the facilities.