HCA says Buyout Costs Reduced Profits

HCA, the largest hospital operator in the U.S., yesterday announced preliminary financial and operating results for the fourth quarter and full year 2006.  The company will announce its complete fourth quarter and year-end 2006 results on February 6.

Revenues for the fourth quarter totaled $6.5 billion compared to $6.2 billion in the fourth quarter of 2005. Net income for the fourth quarter totaled $122 million, compared to $325 million in the prior year fourth quarter.  Revenues for the year ended December 31, 2006 increased 4.2% to $25.5 billion, compared to $24.5% in 2005.  Net income totaled $1.0 billion in 2006 compared to $1.4 billion in 2005.

HCA attributed the drop in income to costs incurred in the management and private equity-led buyout of the healthcare giant completed in November.  Interest expenses also more than doubled.