Capella Healthcare reported a small net loss for the second quarter of 2012 as its operating expenses rose faster than revenue.
The Franklin-based hospital operator lost $1.3 million versus a profit of $3.3 million in the same quarter a year ago. Earnings before interest, taxes and depreciation totaled $25.3 million compared to $26.1 million last year. Revenues for the quarter rose 8 percent to $184.3 million, helped by a 4.6 percent rise in admissions. Same-facility admissions, however, fell 0.1 percent; adjusted admissions rose 5.9 percent.
“We are pleased to show solid results for the second quarter. We continued to execute our key strategies by adding Muskogee Community Hospital to our family, effective July 1, and by making significant investments in information technology, quality and patient care at our hospitals,” said Chairman and CEO Dan Slipkovich. “We are proud of our hospitals’ progress and are confident that we are investing our time, energy and dollars in the resources that position us for future success.”
In April, Capella officials announced an agreement in principle to purchase Arkansas-based St. Joseph’s Mercy Health System. On today’s investor conference call, Slipkovich would not comment further on the deal except to say both organizations are still engaged in exclusive negotiations.
“We are pleased to have been selected by St. Joseph but that’s all we can say at this time,” he said.
Clinical documentation provider M*Modal said its second-quarter profits are expected to come in at $3.0 million, down from $5.1 million a year ago.
Revenues at the Franklin-based company climbed 7 percent to $116 million in the quarter. M*Modal, which is in the process of being acquired by the private-equity arm of JPMorgan Chase, issued only preliminary numbers. Full results will be made public on Tuesday.