IASIS Healthcare Announces Second Quarter 2008 Results

Business Wire, May 6, 2008

FRANKLIN, Tenn. -- IASIS Healthcare[R] LLC ("IASIS") today announced financial and operating results for the fiscal second quarter and six months ended March 31, 2008.

Net revenue for the second quarter totaled $542.9 million, an increase of 14.9%, compared with $472.7 million in the prior year quarter. Adjusted EBITDA for the second quarter totaled $71.8 million, an increase of 8.7%, compared with $66.0 million in the prior year quarter. A table describing adjusted EBITDA and reconciling net earnings to adjusted EBITDA is included in this press release in the attached Supplemental Consolidated Statements of Operations Information. Net earnings for the second quarter totaled $14.7 million, compared with $17.0 million in the prior year quarter.

Admissions and adjusted admissions increased 9.5% and 10.1%, respectively, in the second quarter, compared with the prior year quarter. Net patient revenue per adjusted admission in the second quarter increased 2.4%, compared with the prior year quarter. Net patient revenue includes certain supplemental Medicaid reimbursement of $3.3 million for the quarter and six months ended March 31, 2008, compared with $15.5 million in the same prior year periods. Excluding the impact of this supplemental Medicaid reimbursement, net patient revenue per adjusted admission in the second quarter increased 6.2%, compared with the prior year quarter.

On a same-facility basis, admissions decreased 1.3% and adjusted admissions increased 0.5% in the second quarter, while net patient revenue per adjusted admission increased 1.9%, compared with the prior year quarter. As previously announced, Mesa General Hospital in Mesa, Arizona, will cease operations effective May 31, 2008. Excluding the impact of Mesa General Hospital, same-facility admissions and adjusted admissions increased 1.8% and 2.2%, respectively, compared with the prior year quarter. Excluding the impact of the supplemental Medicaid reimbursement, same-facility net patient revenue per adjusted admission in the second quarter increased 5.7%, compared with the prior year quarter.

Net revenue for the six months ended March 31, 2008, totaled $1.1 billion, an increase of 18.6%, compared with $889.5 million in the prior year period. Adjusted EBITDA for the six months ended March 31, 2008, totaled $136.7 million, an increase of 12.6%, compared with $121.4 million in the prior year period. Net earnings for the six months ended March 31, 2008, totaled $25.4 million, compared with $27.5 million in the prior year period.

Admissions and adjusted admissions increased 13.7% during the six months ended March 31, 2008, compared with the prior year period. Net patient revenue per adjusted admission in the six month period increased 4.0%, compared with the prior year period. Excluding the impact of the supplemental Medicaid reimbursement, net patient revenue per adjusted admission in the six month period increased 6.0%, compared with the prior year period.

On a same-facility basis, admissions decreased 0.1% and adjusted admissions increased 1.4% during the six months ended March 31, 2008, while net patient revenue per adjusted admission increased 4.6%, compared with the prior year period. Excluding the impact of Mesa General Hospital, same-facility admissions and adjusted admissions increased 2.0% and 2.4%, respectively, compared with the prior year period. Excluding the impact of the supplemental Medicaid reimbursement, same-facility net patient revenue per adjusted admission in the six month period increased 6.6%, compared with the prior year period.

In commenting on the results, David R. White, chairman and chief executive officer of IASIS Healthcare, said, "We are pleased with the continued top-line growth in net revenue, driven by Mountain Vista Medical Center and our recent acquisitions, as well as the capital invested in our existing facilities. We remain focused on long-term strategies that will continue to strengthen our hospitals, including capital investments in facilities and technology, recruitment and employment of physicians, and quality improvement initiatives. We believe these efforts will contribute to our continuing success and growth."

A listen-only simulcast and 30-day replay of IASIS' second quarter conference call will be available by clicking the "For Investors" link on the Company's website at www.iasishealthcare.com beginning at 12:00 noon Eastern Time on May 6, 2008. A copy of this press release will also be available on the Company's website.

IASIS, located in Franklin, Tennessee, is a leading owner and operator of medium-sized acute care hospitals in high-growth urban and suburban markets. The Company operates its hospitals with a strong community focus by offering and developing healthcare services targeted to the needs of the markets it serves, promoting strong relationships with physicians and working with local managed care plans. IASIS owns or leases 16 acute care hospital facilities and one behavioral health hospital facility with a total of 2,770 beds in service and has total annual net revenue of approximately $1.9 billion. These hospital facilities are located in six regions: Salt Lake City, Utah; Phoenix, Arizona; Tampa-St. Petersburg, Florida; three cities in Texas, including San Antonio; Las Vegas, Nevada; and West Monroe, Louisiana. IASIS also owns and operates a Medicaid and Medicare managed health plan in Phoenix that serves over 129,000 members. For more information on IASIS, please visit the Company's website at www.iasishealthcare.com.