Profit jumps for LV hospital operator

NASHVILLE, Tenn. -- Columbia/HCA Healthcare Corp., a big Las Vegas hospital operator, today said fourth-quarter profit rose almost six-fold as revenue surged at facilities owned at least a year by the No. 1 U.S. hospital company.

Profit from operations rose to $159 million, or 28 cents a share, from $27 million, or 4 cents, a year earlier. Admissions at operations owned at least a year rose 3.9 percent and revenue at those facilities was up 7.2 percent, the company said.

Analysts said the company benefited from high payment increases from managed-care insurers. The company's performance was tempered by rising costs for pharmaceuticals and other medical supplies and by a squeeze on reimbursements by Medicare, the government health insurance program for the elderly.

Columbia/HCA's earnings also benefited from the comparison with a poor quarter a year ago, when its profit from operations was 23 cents lower than analysts' forecasts.

Earnings were in line with analysts' expectations of 28 cents.

archive