LifePoint profits more than double

Anne Zieger — Mon, 11 Aug 2008 11:45:39 -0400

Hospital operator LifePoint Hospitals has reported its second quarter profits, and they're looking good, particularly when compared with the company's rough first quarter. The company, which is based in Brentwood, TN, said profits more than doubled for the most recent quarter. It booked net income of $30.5 million for the quarter, compared with $13.4 million in the same quarter last year. Revenue was up 4.1 percent, to $680.8 million. The company, a 1999 spin-off of HCA, runs 48 acute-care hospitals in 17 states. It runs hospitals in non-urban communities and seeks to be the only hospital in many of these communities.

These profit increases came despite a 2.3 percent drop in inpatient admissions fueled by its ending two unprofitable obstetric programs, as well as the declining economy. On the other hand, though, the company saw higher-acuity patients, and also had less bad debt. More importantly, the company says, executives did an intensive review of its seven largest hospitals, which has helped it rethink its service lines and drop unprofitable services. Meanwhile, the company's been working on building its medical staff, which should increase 5 percent company wide this year, the company said.

To learn more about LifePoint:
- read this Modern Healthcare article (reg. req.)

Related Articles:
LifePoint shareholder calls for changes
Bad debt savages HCA, LifePoint profits

Cigna Q2 profit shoots up 37 percent

Anne Zieger — Fri, 01 Aug 2008 09:54:08 -0400

While last quarter was pretty much a gloom and doom situation for health plans, this quarter is shaping up better for the industry. Yesterday, we noted that Aetna's second-quarter profits had grown a respectable 10 percent. Now the story is Cigna, whose Q2 '08 income climbed a more-impressive 37 percent over the same period last year. Its net income was $272 million for the second quarter, up from $198 million one year ago. Revenue, meanwhile, rose 11 percent to $4.86 billion from $4.38 billion.

Cigna's income growth came from several sources, including a 19 percent growth in medical membership over the first half of the year, and premium fees climbed 13 percent. Both were fueled partly by the company's April 1 acquisition of Great-West Healthcare. Part of the reason it's doing well financially is that it has less exposure to the commercial risk market than some of its competitors, as it offers fixed-fee products like disability and life insurance. In its health sector, the company offers not only medical coverage, but also behavioral, dental, disease management and pharmacy-related products and services.

To learn more about Cigna's results:
- read this Cigna press release
- read this Wall Street Journal piece (sub. req.)

Related Articles:
Aetna profits up on member, premium increases
Cigna rolls out Second Life community
Cigna first-quarter profits drop 80 percent
Express Scripts, Cigna agree to $27M 'drug switching' settlement

quarterly profits

LifePoint profits more than double

Cigna Q2 profit shoots up 37 percent