LifePoint Hospitals, Inc. (NASDAQ: LPNT) today announced results for the first quarter ended March 31, 2012.
For the first quarter ended March 31, 2012, revenues from continuing operations were $851.0 million, up 12.2% from $758.5 million for the same period a year ago. Income from continuing operations attributable to LifePoint Hospitals, Inc. stockholders for the first quarter ended March 31, 2012, increased 22.3% to $56.0 million, or $1.16 per diluted share, compared with $45.8 million, or $0.89 per diluted share, for the same period last year.
The results for the first quarter ended March 31, 2012, included a pre-tax net benefit of $25.6 million, or $0.33 per diluted share, relating to the Medicare Rural Floor settlement; a pre-tax impairment charge of $3.1 million, or $0.04 per diluted share, relating to the impairment of certain assets; and the absence of pre-tax revenue, net of related expenses, of $5.0 million, or $0.07 per diluted share, as a result of a delay in approval of a new provider tax program in West Virginia. All “per diluted share” disclosures in this paragraph are net of income taxes.
On April 5, 2012, a settlement agreement (the “Rural Floor Settlement”) was signed between the United States Department of Health and Human Services (“HHS”), the Secretary of HHS, the Centers for Medicare and Medicaid Services (“CMS”) and a large number of healthcare service providers, including the Company’s hospitals. The Rural Floor Settlement is intended to resolve all claims that have been brought or could have been brought relating to CMS’s calculation of the rural floor budget neutrality adjustment that was created by the Balanced Budget Act of 1997 from federal fiscal year 1998 through and including federal fiscal year 2011 for healthcare service providers that participated in certain court cases and group appeals. As a result of the Rural Floor Settlement, the Company recognized $31.3 million of additional Medicare revenue and approximately $5.7 million of costs during the three months ended March 31, 2012.