MedCath 2nd Quarter Profit Hit By One-time Charges

CHARLOTTE (AP) — Hospital operator MedCath Corp. said its profit fell 2 percent in the fiscal second quarter due to one-time charges, but its results were better than analysts expected.

Thursday, MedCath said its profit edged down due to increased stock-based compensation and other expenses. Adjusted patient admissions decreased, but outpatient visits were up sharply, and revenue rose 3 percent.

MedCath's profit grew to $5.6 million, or 28 cents per share, from $5.7 million, or 29 cents per share. Excluding one-time items, the Charlotte, N.C., company said it earned 31 cents per share. Revenue rose to $158.9 million from $154.2 million.

Analysts expected a profit of 20 cents per share and $158.6 million in revenue, according to a Thomson Reuters survey.

MedCath operates and has an interest in nine hospitals with a capacity of 676 beds. For the three months ended March 31, the company said adjusted admissions — a measurement that includes inpatient visits and outpatient procedures — fell 2.4 percent to 10,566, but revenue from those hospitals grew 4 percent. Admissions at facilities MedCath has owned for at least a year decreased 10.2 percent to 7,052, but same-facility outpatient visits climbed 17.9 percent to 8,004.