IASIS Healthcare third quarter net revenue increases 12.6% to $718.6 million

IASIS Healthcare® LLC ("IASIS") today announced financial and operating results for the fiscal third quarter and nine months ended June 30, 2011.

“Our focus on building collaborative care environments in the communities we serve includes physician alignment strategies, investments in human and technological resources, and the creation of new patient access points of care.”

Net revenue for the third quarter totaled $718.6 million, an increase of 12.6%, compared to $638.0 million in the prior year quarter. Adjusted EBITDA for the third quarter totaled $81.6 million, compared to $76.6 million in the prior year quarter. Net earnings from continuing operations for the third quarter totaled $1.6 million, compared to $21.7 million in the prior year quarter. Net earnings from continuing operations for the third quarter includes a $23.1 million loss on extinguishment of debt associated with the Company's debt refinancing transaction, which was completed on May 3, 2011.

In the third quarter, admissions and adjusted admissions both increased 20.0% compared to the prior year quarter, while net patient revenue per adjusted admission increased 0.7% compared to the prior year quarter. On a same-facility basis, excluding the impact of the Brim Holdings and St. Joseph Medical Center acquisitions, admissions and adjusted admissions increased 0.9% and 0.8%, respectively, each compared to the prior year quarter. On a same-facility basis, net patient revenue per adjusted admission increased 4.1% compared to the prior year quarter.

Net revenue for the third quarter includes $8.1 million in supplemental Medicaid incentive reimbursement related to the adoption of certified electronic health record ("EHR") technology. The Company has incurred information technology and other related operating expenses in order to implement its certified EHR technology and meet meaningful use requirements. These expenses are expected to continue throughout the Company's EHR implementation.

Net revenue for the nine months ended June 30, 2011, totaled $2.1 billion, an increase of 9.5%, compared to $1.9 billion in the prior year period. Adjusted EBITDA for the nine months ended June 30, 2011 and 2010, totaled $228.0 million in both periods. Net earnings from continuing operations for the nine months ended June 30, 2011, which includes a $23.1 million loss on extinguishment of debt, totaled $40.6 million, compared to $63.2 million in the prior year period.

For the nine months ended June 30, 2011, admissions and adjusted admissions increased 10.2% and 12.9%, respectively, compared to the prior year period, while net patient revenue per adjusted admission increased 1.4% compared to the prior year period. On a same-facility basis, admissions declined 1.5% and adjusted admissions increased 0.4%, each compared to the prior year period. On a same-facility basis, net patient revenue per adjusted admission increased 3.5% compared to the prior year period.

"As the healthcare industry continues to be under economic and political pressure, we remain committed to implementing operational and strategic initiatives that we believe will ensure long-term success in a new era of healthcare delivery," said Carl Whitmer, president and chief executive officer of IASIS Healthcare. "Our focus on building collaborative care environments in the communities we serve includes physician alignment strategies, investments in human and technological resources, and the creation of new patient access points of care."

Whitmer added, "We also are excited about the integration and growth opportunities arising from our recent hospital acquisitions. We expect to continue our disciplined approach to acquisitions and development initiatives, targeting opportunities that we believe will help build a strong basis for the Company's future growth."