LifePoint Hospitals fourth quarter revenues increase 6.6% to $781.3M

LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the fourth quarter and year ended December 31, 2011.

For the fourth quarter ended December 31, 2011, revenues from continuing operations were $781.3 million, up 6.6% from $732.9 million for the same period a year ago. Income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders for the fourth quarter ended December 31, 2011, increased 3.6% to $37.7 million, or $0.78 per diluted share, compared with $36.3 million, or $0.70 per diluted share, for the same period last year.

For the year ended December 31, 2011, revenues from continuing operations were $3,026.1 million, up 7.4% from $2,818.6 million for the same period a year ago. Income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders for 2011 increased 4.5% to $162.7 million, or $3.22 per diluted share, compared with $155.6 million, or $2.91 per diluted share, for the same period last year.

In commenting on the results, William F. Carpenter III, chairman and chief executive officer of LifePoint Hospitals, said, "By executing on our key strategies for enhancing value - providing quality care, growing both organically and through acquisitions, improving operational efficiency and developing high-performing talent - we achieved solid results in a tough environment. Looking ahead, as we continue to execute our strategy, we will remain nimble in our approach while maintaining disciplined cost controls as we strive to provide the highest quality of care. We are pleased with our progress to date and look forward to the opportunities that lie ahead in 2012."

During the fourth quarter of 2011, the Company adopted the provisions of Accounting Standards Update ("ASU") No. 2011-7, "Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Health Care Entities" ("ASU 2011-7"). ASU 2011-7 requires the presentation of revenues net of the provision for doubtful accounts. The adoption of ASU 2011-7 did not impact the Company's financial position, results of operations or cash flows.

Additionally, during the fourth quarter of 2011, the Company determined that all of its previously recognized Medicaid electronic health record ("EHR") incentive payments as well as all of its future EHR incentive payments are more appropriately classified as other income, separate from revenues, based on the Company's understanding of informal guidance provided by the United States Security and Exchange Commission. This change did not impact the Company's historical financial position, results of operations or cash flows. For the fourth quarter of 2011 and for the year ended December 31, 2011, the Company recognized $11.5 million and $26.7 million, respectively, in Medicaid EHR incentive payments. The Company estimates that it incurred approximately $3.3 million in additional other operating expenses and $1.7 million in additional depreciation expense in connection with its implementations of its various EHR initiatives during the fourth quarter of 2011 and approximately $11.2 million in additional other operating expenses and $4.5 million in additional depreciation expense during the year ended December 31, 2011.

The Company also issued the following guidance for 2012:

As it relates to the guidance for 2012, the Company anticipates an increase in its depreciation expense as compared to prior years. This increase is primarily a result of the investments in information systems in connection with the Company's implementations of its various EHR initiatives as well as the impact of recent acquisitions. The Company estimates its depreciation and amortization expense for 2012 to be in a range of $181.0 million and $191.0 million.

Source: LifePoint Hospitals, Inc.