Catholic Healthcare West notes increased revenue

Michelle Swafford

Monday, Oct. 18, 2004 | 11:02 a.m.

Catholic Healthcare West, parent company of two St. Rose Dominican Hospitals, reported excess revenue over expenses of $246 million for fiscal year 2004 ended June 30. That compares with excess revenue over expenses of $66.2 million for fiscal year 2003.

Revenue of $5.4 billion was up in fiscal year 2004 from $4.77 billion in the previous year, partly because of a 3.6 percent increase in patient admissions.

Operating income including one-time gains for the sale of 15 medical office buildings rose to $146.8 million in 2004 from $79.1 million in 2003.

San Francisco-based Catholic Healthcare West operates as a nonprofit organization with 42 hospitals in Nevada, California and Arizona, but it reports its financial performance because it has publicly held debt. The company announced its financial results Friday.

Locally, Catholic Healthcare West operates St. Rose Dominican Hospitals -- Siena Campus and St. Rose Dominican Hospitals -- Rose de Lima Campus, both in Henderson. The company is building St. Rose Dominican Hospitals -- San Martin Campus in the southwest part of the Las Vegas Valley for $140 million. It's scheduled to open in the spring of 2006 with 110 private rooms.

In addition to building a new hospital, Catholic Healthcare West continues to invest in its current hospitals through expansions and upgrades. The Siena campus added 66 private rooms including a pediatric intensive care unit and now offers neurosurgery, St. Rose spokesman Andy North said.

The Rose de Lima campus added cardiac catheterization lab and renovated its waiting areas, obstetrics department and some of the patient rooms, North said. A wound-healing center is scheduled to open in December with some services beginning Oct. 21, he said.

"St. Rose has been a part of the Henderson community for more than 57 years and during that time it has been our mission and focus to provide health care to all those that are in need," North said. "The non-for-profit status complements that mission in that we are required to re-invest our profit into community services and benefit."

Catholic Healthcare West, like most hospitals across the nation, is seeing an increase in uninsured and underinsured patients. The company increased its provision for bad debts during 2004 to $397.4 million from $286.2 million in fiscal year 2003.

The company said it spent more than $566 million in community benefits and free health care during fiscal year 2004. Analysts who track nonprofit hospitals say Catholic Healthcare West is doing well and was upgraded in March to a BBB+ rating with Standard & Poor's Corp., which is an investment grade credit rating.

"They had a very strong year, probably their strongest year since CHW was formed," said Lisa Zuckerman, director with Standard & Poor's. "The organization overall has really demonstrated a strong turnaround."