LifePoint Income Falls 19%, Revenues Rise

LifePoint Hospitals’ new strategic emphasis on growing market share led to higher revenues in the third quarter, but didn’t translate into higher earnings.

The Brentwood, Tenn.-based hospital chain reported yesterday that revenues rose 4.6 percent to $656.2 million in the third quarter ended September 30, compared to $627.3 million in the year ago period. But earnings from continuing operations decreased nearly 7 percent to $0.55 per share, compared to the third quarter of 2006 when earnings were $0.60 per share.

Net income for the quarter decreased 19 percent to $28.2 million, or $0.49 per diluted share, compared with net income of $34.9 million, or $0.62 per diluted share, for the third quarter of 2006.

“We are making progress in addressing industry challenges by implementing our strategic plan. Our intense, company-wide focus on growing market share and managing costs is bearing fruit. In addition, the contribution of physicians on staff and continuing recruitment efforts are adding value in our hospital communities,” William F. Carpenter, III, president and CEO of LifePoint, said in a statement.

For the nine months ended September 30, 2007, revenues from continuing operations were $2.0 billion, up 11.5 percent from $1.8 billion for the same nine-month period in 2006. Income from continuing operations for the nine month period decreased nearly 11 percent to $1.66 per diluted share, compared with income of $1.89 per diluted share for the nine month period in 2006. Net income for the nine months decreased nearly 34 percent to $71.4 million, or $1.25 per diluted share, compared with net income for the same nine-month period in 2006 of $107.8 million, or $1.92 per diluted share.

LifePoint Hospitals focuses on providing healthcare services in non-urban communities in 18 states. Of the company’s 49 hospitals, 46 are in communities where LifePoint is the sole community hospital provider.