LifePoint hospitals sees 30% profit drop for '07

It seems that LifePoint Hospitals took a beating in fiscal 2007. The Brentwood, Tenn.-based chain said that despite raised revenues, profits fell 20 percent, undermined by volume losses of 15 percent in six of its markets and a rise in bad debt to 16 percent. For the fourth quarter of fiscal '07, the company reported profits of $30.6 million on revenues of $658.4 million, compared with $38.4 million in the fourth quarter of fiscal '06. For the year, things looked worse. Despite a revenue increase of 9.7 percent, to $2.63 billion, profits fell 30.2 percent to $102 million in 2007, compared with profits of $146.2 for fiscal '06.

In addition to bad debt, other factors that helped sink profits included a late starting flu season, the loss of physicians from hospital medical staffs, and the closing of unprofitable service lines. Also, some of LifePoint's Southern states reported fewer seasonal residents.

To learn more about LifePoint's financials:
- read this Modern Healthcare piece (reg. req.)

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