Lake Mead Hospital owner reports a loss

Tuesday, Nov. 11, 2003 | 10:59 a.m.

SUN STAFF AND WIRE REPORTS

SANTA BARBARA, Calif. -- Tenet Healthcare Inc., owner of Lake Mead Hospital in North Las Vegas, said Monday it swung to a loss in the third quarter as it significantly increased its reserve for bad debt.

The nation's second-largest for-profit hospital chain reported a loss of $308 million, or 66 cents per share, for the quarter ended Sept. 30, compared to net income of $328 million, or 66 cents per share, in the same period last year.

Revenue fell 6 percent to $3.3 billion, compared to $3.5 billion in the same period last year, according to a filing Monday with the Securities and Exchange Commission.

Analysts surveyed by Thomson First Call had been expecting net income of 5 cents per share.

The company's provision for doubtful accounts rose to $522 million from $260 million in the same quarter last year. Tenet said the huge increase came as admissions of uninsured patients rose sharply. Tenet, based in Santa Barbara, Calif., said the increase was a trend that resulted from higher unemployment and an increase in patient co-payments.

Shares of Tenet were down 16 cents to $13.25 at the end of regular trading on the New York Stock Exchange. They lost another 33 cents, or 2.4 percent, in the extended session.

Locally, the 198-bed Lake Mead Hospital continues to see an average of 2,000 patients monthly in its emergency department and overall business volume is in line with the hospital's projections, said Nancy Whitman, director of business development.

Lake Mead operations have not been affected by the corporation's plan to sell the North Las Vegas hospital nor by corporate investigations and litigation, she said.

"We continue to provide services and care to patients," Whitman said. "The reality is, business goes on and we're here to serve the community."

Whitman said admissions were up somewhat and the length of stay remains unchanged, with an average stay of five days.

Lake Mead is seeing an increase in uninsured patients, as are many other hospitals across the nation, Whitman said.

She could not comment on the hospital's profit or actual admissions other than to say that business was steady.