Hospital and health plan operator Iasis Healthcare saw earnings fall in the second quarter of its 2010 fiscal year, hitting about $20 million compared to $25.6 million in Q2 2009.
The decline is partially attributable to the Franklin-based company's Health Choice managed care plan in Arizona, which saw a nearly $9.4 million drop in earnings from continuing operations before income taxes. The company said it had a slight decline in per member per month revenue, and its medical claims expense increased 26 percent in the quarter. In total, the company’s expenses as a percent of revenue grew from 92 percent to 94 percent.
Revenue for the quarter was $624 million, up nearly 8 percent from the second quarter of 2008.
Admissions were up 0.8 percent and adjusted admissions fell 0.4 percent, mostly due to the closure of a neonatal intensive care unit and obstetrics unit in Nevada. Excluding service closures, admissions increased 2.2 percent, the company said on its earnings call this morning. Net patient revenue per adjusted admission increased 4.7 percent.
"While we recognize the second quarter included certain challenges, we continue to believe we are well positioned for the future," said Chairman and CEO David White in a statement. "In the midst of economic headwinds, including high unemployment and state budgetary issues, our solid track record of effective cost management has helped to maintain strong operating cash flows and strengthen our financial position. We believe these characteristics, along with the strategic use of capital over the recent past, will help us to navigate the uncertainty of a challenging economic environment.”
White recently announced plans to retire from the CEO role at Iasis, installing CFO Carl Whitmer as his replacement at year end.
At Delek US Holding, the first quarter was a forgettable one: Revenues more than doubled to $893 million but gross margins fell more than 500 basis points to 8.1 percent. The company lost $14.1 million versus $3.0 million a year ago.
Per diluted share, Brentwood-based Delek lost 26 cents, more than four times its year-ago loss. Analysts had expected a loss of 23 cents. That shortfall pushed the stock (Ticker: DK) down a bit to $6.72 at 11:30 a.m. Year to date, the stock has lost about 1.5 percent.
Refining was a major contributor to the worse numbers: Hurt by narrowing crack spreads, its margin was just $2.5 million on sales of $402 million. Profits at the company's retail and marketing segments, meanwhile, rose 7 percent to $12.3 million, helped by same-store sales increases and boosts from upgraded Mapco stores.
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