IASIS Healthcare® LLC ("IASIS") today announced financial and operating results for the fiscal second quarter and six months ended March 31, 2012. In the first quarter of 2012, IASIS adopted accounting guidance that results in the classification of the provision for bad debts as a revenue deduction rather than an operating expense, and such guidance has been applied to the financial statements of both the current and prior year periods.
Net revenue for the second quarter totaled $647.6 million, an increase of 3.8%, compared to $624.2 million in the prior year quarter. Net revenue for the second quarter ended March 31, 2012, which includes an increase in acute care revenue of $76.2 million or 17.6% compared to the prior year quarter, has been affected by a decline in premium revenue at Health Choice, the Company's Medicaid and Medicare managed health plan in Arizona, as a result of capitation rate reductions implemented by the Arizona Health Care Cost Containment System ("AHCCCS") and a state mandated reduction in certain Medicaid enrollees. Adjusted EBITDA for the second quarter totaled $88.8 million, compared to $78.7 million in the prior year quarter. Net earnings from continuing operations for the second quarter, which includes additional interest costs resulting from the Company's fiscal 2011 refinancing transaction, totaled $12.8 million, compared to $22.9 million in the prior year quarter.
Acute care results for the second quarter includes the impact of two separate adjustments to Medicare revenue related to prior periods, the net effect of which resulted in an increase to net revenue of $11.1 million and adjusted EBITDA of $7.0 million. One of these adjustments is the result of an industry-wide settlement with the Centers for Medicare and Medicaid Services ("CMS") relating to a rural floor provision established as part of the Balanced Budget Act of 1997. This settlement resulted in an increase to acute care revenue of $15.4 million during the second quarter of fiscal 2012, as well as an increase in other operating expenses of $4.1 million for related legal and consulting fees. IASIS expects payment of this settlement by June 30, 2012. In addition, during the second quarter of fiscal 2012, new Supplemental Security Income ("SSI") ratios, used for calculating Medicare Disproportionate Share Hospital ("DSH") reimbursement, were published by CMS, for federal fiscal years ending September 30, 2006 through 2009. As a result of these new SSI ratios, U.S. hospitals must recalculate their Medicare DSH reimbursement for the affected years and record adjustments for any differences in estimated reimbursement as a part of their annual cost report settlement process. The cumulative impact to IASIS for these retroactive adjustments for prior periods through fiscal 2011 was a reduction in acute care revenue of $4.3 million for the second quarter of fiscal 2012.
In the second quarter, admissions and adjusted admissions increased 14.7% and 15.1%, respectively, compared to the prior year quarter. On a same-facility basis, admissions and adjusted admissions increased 0.3% and 2.1%, respectively, compared to the prior year quarter, while net patient revenue per adjusted admission increased 2.7%, compared to the prior year quarter.
Net revenue for the six months ended March 31, 2012, totaled $1.27 billion, an increase of 2.7%, compared to $1.24 billion in the prior year period. Adjusted EBITDA for the six months ended March 31, 2012, totaled $161.0 million, compared to $147.5 million in the prior year period. Net earnings from continuing operations for the six months ended March 31, 2012, which includes additional interest costs resulting from the Company's fiscal 2011 refinancing transaction, totaled $16.4 million, compared to $40.1 million in the prior year period.
For the six months ended March 31, 2012, admissions and adjusted admissions increased 17.6% and 16.5%, respectively, compared to the prior year period. On a same-facility basis, admissions and adjusted admissions increased 2.4% and 2.7%, respectively, each compared to the prior year period, while net patient revenue per adjusted admission increased 0.8%, compared to the prior year period.
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