Hospitals

Quorum Health Group, Inc.

Quorum <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: QHGI)") else Response.Write("(Nasdaq: QHGI)") end if %> is a fixer-upper in the hospital industry, acquiring acute care facilities that it thinks are underperforming and could use Quorum's management expertise. The company is also a sizable player in the hospital management business, providing management consulting and other services to hospitals which, in the aggregate, operate over 25,000 beds. Its management strategy, which is supposed to provide a higher margin contribution, hasn't really shown up in the numbers. In addition, occupancy per bed in service has been going in the wrong direction over the last three years. Among the smaller-market players, Quorum doesn't look like it has the same expertise as Health Management Associates. However, if the company can develop better asset management practices, the numbers may improve.

Latest Financials

Net operating revenues for the twelve months ended June 30, 1997, increased 29% to $1.4 billion compared with net revenues of $1.1 billion in fiscal 1996. Income before an extraordinary item increased 21% to $84 million, or $1.66 per share ($1.11 restated for the split), compared with $69.2 million, or $1.39 per share ($0.93 restated), in the year-earlier period. Earnings before interest, minority interest, income taxes, depreciation and amortization expense, and net gain on sale of assets (EBITDA) rose 25% to $260.9 million from $208.3 million in the previous year.

(Go to next snapshot.)

© Copyright 1995-2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. The Motley Fool is a registered trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us
..

..

..

..

..

....

...

...

...

...