For the three months, the Company reported a provision for doubtful accounts of $89.6 million, or 7.6% of revenue. Excluding the self-pay discounts of $48.6 million (which reduced both provision for doubtful accounts as a percent of net revenue and net revenue relative to what they would have been without the discounts), the Company estimates that the provision for doubtful accounts would have been 11.2% of revenue. The Company continued to include in the allowance for doubtful accounts on its balance sheet approximately $15 million beyond what the Company's historical experience would require, in order to reflect the potential for further deterioration in the collectibility of receivables from uninsured patients.

For the three months, cash flow from operating activities was $124.8 million, or $149.5 million excluding cash interest payments of $7.7 million and cash tax payments of $17.0 million. The Company spent $90.8 million on capital expenditures and received proceeds of $220.4 million from the issuance of common stock.

At September 30, cash and cash equivalents were $373.7 million, and the Company had $578 million available under its $600 million revolving line of credit, which was reduced by $22 million of outstanding letters of credit. Long-term debt outstanding was $1.7 billion, and stockholders' equity totaled $2.9 billion. On October 4, 2005, the Company finalized an agreement (effective October 1) to acquire a 65% interest in Montclair Baptist Medical Center in Birmingham, AL, for approximately $116 million; the Company used cash on hand to fund the transaction.

The Company reclassified as discontinued operations the results from Central Arkansas Hospital in Searcy, AR, in the third quarter, with all prior periods restated. The Company entered into a definitive agreement to sell the hospital on September 14, 2005, for approximately $16 million less net assumed liabilities. The loss from discontinued operations includes a $4.7 million after-tax impairment charge related to the sale.

For the nine months, the Company reported revenues of $3.6 billion; adjusted EBITDA of $545.4 million; net income of $171.4 million; income from continuing operations of $174.4 million; diluted EPS of $2.07; and diluted EPS from continuing operations of $2.11.

On a same-facility basis compared to the prior year nine-month period, inpatient admissions increased 0.8%, adjusted admissions increased 0.3%, and inpatient surgeries increased 0.3%. Patient revenue per adjusted admission increased 5.8%, patient revenues increased 6.2%, and revenues increased 6.1%. Revenue growth rates reflected the impact of both components of the Company's self-pay discount policy; excluding self-pay discounts (which reduced net revenue relative to what it would have been without the discounts), the Company estimates that patient revenue per adjusted admission would have increased 9.3%, patient revenues would have increased 9.7%, and revenues would have increased 9.4%. Same-facility results included facilities owned for the full nine months of both years.

This is cache, read story here