Columbia / HCA Posts Loss Amid Federal Billing Probe
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Columbia/HCA Healthcare Corp. on Friday said it lost $1.29 billion during the fourth quarter as the Nashville-based hospital giant continued a restructuring prompted by a massive federal investigation into its billing practices.
Columbia’s revenue dropped 9% and the company took $843 million in write-offs during the quarter. The loss remained within analysts’ latest expectations.
The quarterly loss of $2.01 per share on a diluted basis compares with profit of $414 million, or 61 cents a share, in the comparable 1996 quarter.
Revenue from continuing operations for the quarter ended Dec. 31 totaled $4.4 billion, compared with $4.8 billion a year earlier.
Most of the write-offs--$732 million--were on hospitals and other facilities Columbia hopes to sell. The company also spent $55 million on an internal investigation and severance packages, and $56 million to change accounting practices.
Three Columbia middle managers have been indicted in Florida, and the company itself is a target of the investigation into allegations it overbilled Medicare, Medicaid and other government health programs.
Columbia shares rose 63 cents to close at $26.69 on the New York Stock Exchange.
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