BUSINESSNews in brief - Nov. 27, 2006HealthSouth's loss widens - McKesson acquires rival HealthSouth's loss widensHealthSouth posted a wider loss in the third quarter, citing weaker volumes in the acute care hospital sector and pricing pressure. The Birmingham, Ala.-based rehabilitation chain reported a loss of $76.1 million for the quarter, which ended Sept. 30, compared with a loss of $11.5 million for the same period a year earlier. Net revenue also fell, totaling $731.2 million in the third quarter of 2006, down from $766.3 million the year before. HealthSouth is still trying to recover from a massive accounting scandal that nearly sent the company into bankruptcy three years ago. The company announced in August that it would sell or spin off three of its four divisions to concentrate solely on inpatient rehabilitation care. The bulk of the proceeds would likely be used to help pay down debt. McKesson acquires rivalMcKesson Corp. agreed on Nov. 6 to acquire Per-Se Technologies Inc. for $1.8 billion. The price of the proposed acquisition, which is expected to close in the first quarter of 2007, includes McKesson assuming the outstanding debt of Per-Se Technologies, which provides software and services to hospitals, physicians and pharmacies. The acquisition of Per-Se will boost McKesson's offerings in those areas, San Francisco-based McKesson said. The company also sells pharmaceuticals and medical supplies. Copyright 2006 American Medical Association. All rights reserved. |
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