THIRD-QUARTER EARNINGS: COLUMBIA/HCA, OXFORD POST INCREASES
Columbia/HCA Healthcare Corp. and Oxford Health Plans Inc.This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
reported increased profits for this year's third quarter. Their
stocks received a similar vote of confidence yesterday from Wall
Street, which cheered "the defeat of two anti-managed care
propositions on the ballot in California and the fact that
Republicans retained control of Congress," WALL STREET JOURNAL
reports (11/7). Analyst John Runningen, with Atlanta, GA-based
Robinson-Humphrey Co., noted that "some investors had feared that
the election of a Democratic majority in Congress would mean
stiffer controls over the health care industry and a move toward
a government-controlled system."
A TOAST: Amid "continuing strong growth in revenue and
hospital admissions," Columbia/HCA reported a 17% rise in net
income to $311 million, compared to year-earlier results of $267
million. At hospitals that the Nashville, TN-based company has
owned for more than a year, admissions for the quarter rose four
percent, while industry admissions remained flat. WALL STREET
JOURNAL reports that combined inpatient and outpatient activity
grew by eight percent at facilities owned by Columbia/HCA for
more than a year, "and revenue was up 11% on the same facility
basis" (Tomsho, 11/7). Oxford Health Plans reported a net income
increase of 77% to $26.7 million, compared to year-earlier
results of $15.1 million. BLOOMBERG BUSINESS NEWS/NEW YORK TIMES
reports that the Norwalk, CT-based company's revenue "surged 69%
to $811.3 million from $480.2 million" last year. Oxford cited
stable medical care prices and lower administrative expenses as
factors that helped control costs (11/7). United HealthCare's
stock rose three points for the quarter (Norris, NEW YORK TIMES,
11/7).
MAYBE NEXT TIME: Rockville, MD-based Mid Atlantic Medical
Services Inc. "announced its second straight losing quarter
yesterday -- a net loss of $4.7 million." Mid Atlantic reported
a net income of $14.4 million during the same quarter in 1995.
The managed care insurer had a 13.2% increase in enrollment for
the quarter and a 18.5% jump in revenue to $288.2 million, but
"medical expenses rose twice as fast revenue -- up 36.5% to
$264.8 million" (Baltimore SUN, 11/7). Lexington, KY-based
Humana Inc. also reported a drop in net income for the quarter,
blaming "higher medical and administrative costs as well as
severance charges." The company's net income fell 26% to $32
million from year-earlier results of $43 million. The results
included a "one-time pretax charge of between $5 million and $6
million, ... for severance payments related to executive changes
made in the second quarter" (WALL STREET JOURNAL, 11/7). Revenue
rose 63% from last year's $1.07 billion to $1.75 billion
(BLOOMBERG BUSINESS NEWS/NEW YORK TIMES, 11/7). Coram Healthcare
Corp. reported a $12 million loss for the third quarter, compared
with last year's third-quarter loss of $254.7 million. WALL
STREET JOURNAL reports that Coram agreed last month "to be
acquired by Integrated Health Services Inc. of Owings Mills, MD,
for $280 million in stock and the assumption of $375 million in
debt" (11/7).