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Health care industry

Healthcare America Announces Discontinued Sale Discussions and Quarterly Results

Strategic Insights

— 2 min read

Healthcare America, a healthcare management company, has discontinued discussions with Liberty Capital Partners and its senior secured lenders to sell its behavioral health hospitals and related assets. Despite this, the company has reported a loss of $2.5 million or $0.22 per share for the second quarter ended June 30, 1995. This loss is an increase from the $0.2 million or $0.02 per share incurred in the same period last year. The second quarter results also include restructuring expenses of $0.9 million, which were not present in the same period of 1994.

Key Takeaways:

  • Healthcare America has discontinued discussions to sell its behavioral health hospitals and related assets due to the expiration of the exclusivity period on August 11, 1995.
  • The company reported a loss of $2.5 million or $0.22 per share for the second quarter ended June 30, 1995, an increase from the $0.2 million or $0.02 per share loss incurred in the same period last year.
  • The second quarter results include restructuring expenses of $0.9 million, which were not present in the same period of 1994.
  • Revenues, salaries and benefits, and other expenses increased for the three and six month periods ended June 30, 1995 compared to the same periods of 1994 due to the operations taken over by the company.
  • The company's real estate operations have declined due to tenant defaults and the subsequent commencement of operations at the facilities.
  • Favorable prior year settlements of Medicare and Medicaid cost reports contributed $0.2 million to the revenue for the quarter ended June 30, 1995.
  • Depreciation and amortization decreased by $0.7 million and $1.6 million for the three and six month periods ended June 30, 1995 compared to the same periods of the prior year, primarily due to the lower net book value of assets.

Statistics:

  • Loss for the second quarter ended June 30, 1995: $2.5 million or $0.22 per share.
  • Loss for the same period in 1994: $0.2 million or $0.02 per share.
  • Restructuring expenses for the second quarter ended June 30, 1995: $0.9 million.
  • Increase in revenues, salaries, and benefits for the three and six month periods ended June 30, 1995: 100% compared to the same periods of 1994.
  • Decrease in depreciation and amortization for the three and six month periods ended June 30, 1995: $0.7 million and $1.6 million compared to the same periods of the prior year.

Sources:

  • Business Wire, "Healthcare America, Inc. Announces Discontinued Sale Discussions and Quarterly Results" (Aug. 15, 1995).
  • Healthcare America Inc. press release, "Discontinued Sale Discussions and Quarterly Results" (Aug. 15, 1995).

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