IASIS Healthcare® LLC ("IASIS") today announced financial and operating results for the fiscal fourth quarter and year ended September 30, 2012.
Net revenue for the fourth quarter totaled $633.0 million, a decrease of 2.2%, compared to $647.5 million in the prior year quarter. Acute care revenue for the fourth quarter increased $23.0 million or 4.9% compared to the prior year quarter, while premium revenue at Health Choice, the Company's Medicaid and Medicare managed health plan, decreased $37.5 million or 21.2% compared to the prior year quarter, as a result of an Arizona state mandated reduction in certain Medicaid enrollees, along with capitation rate reductions implemented by the Arizona Health Care Cost Containment System ("AHCCCS"). Adjusted EBITDA for the fourth quarter totaled $70.7 million, compared to $74.8 million in the prior year quarter. Net earnings from continuing operations for the fourth quarter totaled $3.0 million, compared to $4.9 million in the prior year quarter.
During the fourth quarter, as a result of the dividend paid to the common stockholders of IASIS' parent company in June 2012, the Company reset the exercise prices of all outstanding common stock options. In connection with the dividend and related option re-pricing, results for the fourth quarter include stock-based and other compensation totaling $3.6 million and $2.0 million, respectively. In addition, the fourth quarter includes $1.7 million in start-up costs associated with the expansion of the Company's St. Joseph Medical Center campus into the Heights community of Houston, Texas.
In the fourth quarter, admissions and adjusted admissions increased 0.5% and 2.0%, respectively, while net patient revenue per adjusted admission increased 3.0%, each compared to the prior year quarter.
Net revenue for the year ended September 30, 2012, totaled $2.5 billion, which was consistent with the prior year. Acute care revenue for the year ended September 30, 2012, increased $187.3 million or 10.5% compared to the prior year, while premium revenue at Health Choice declined $188.2 million or 24.8% compared to the prior year. Adjusted EBITDA for the year ended September 30, 2012, totaled $302.2 million, compared to $304.7 million in the prior year. Net earnings from continuing operations for the year ended September 30, 2012, totaled $31.3 million, compared to $47.3 million in the prior year, which included a $23.1 million loss on extinguishment of debt.
For the year ended September 30, 2012, admissions and adjusted admissions increased 9.3% and 9.9%, respectively, compared to the prior year. On a same-facility basis, admissions and adjusted admissions increased 1.3% and 2.9%, respectively, while net patient revenue per adjusted admission increased 1.8%, each compared to the prior year.
"The ongoing economic and industry headwinds, especially with regard to substantial Medicaid cuts and increasing uncompensated care, presented significant challenges, particularly in certain of our markets, during our 2012 year. In light of overcoming these significant pressures, we are pleased with our overall performance, which also includes volume growth, improved quality metrics, increased patient satisfaction, effective cost management and exciting business development activities, including our new partnership with Aurora Health Care," said IASIS Healthcare President and Chief Executive Officer Carl Whitmer.
Whitmer continued, "As we look toward the coming year, we continue to focus on integrating our operational strategies designed for navigating continuing healthcare reform, executing our development strategies and enhancing our constant commitment to operational excellence across all clinical and business sectors, all designed to position the Company for future success."
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