Summit Health Ltd. battles its way back on Wall Street despite an ill healthcare market.Summit Health Ltd. battles its way back on Wall Street despite an ill healthcare market Summit Health Ltd., the $375.8 million (revenues) Burbank-based hospital and nursing-home operator, is battling to make headway Verb 1. make headway - obtain advantages, such as points, etc.; "The home team was gaining ground"; "After defeating the Knicks, the Blazers pulled ahead of the Lakers in the battle for the number-one playoff berth in the Western Conference" on Wall Street in the face of the toughest healthcare market in decades. The company's stock traded last week in the $1.50-a-share range, off from a 52-week high of $2 a share, but up substantially from its low of $1 a share. The stock reached a high of $9 a share in 1987. After two straight years of losses, Summit this fiscal year is posting modest profits. In the first three quarters, Summit reported a net of $3 million on revenues of $284 million, compared with a loss of $8.4 million on revenues of $284.9 million for the 1989 full fiscal year. "This has been a tough dollar to make," said Randolph Speer, Summit's senior vice president and chief financial officer, last week. "We have to just keep making progress. We look at 1990 as our year of stabilization." Like other hospital operators, Summit Health has been hit by federal fiscal tightness, which in the last several years has crimped crimped said of grain that has been passed through corrugated rollers after previous exposure to moist heat so that the grain is fractured but there is a minimum of dust. Medicare spending, the healthcare program for the aged. Many hospital administrators complain that Medicare payments do not compensate hospitals for the full costs incurred in taking care of the elderly. Summit's latest 10-K filing with the Securities and Exchange Commission said that "Summit's operating costs operating costs npl → gastos mpl operacionales have increased at a higher rate than the rate of increase for Medicare payments." Speer said he does not anticipate the federal government will substantially increase Medicare payments any time soon. Too, private sector health plans have continued to drive hard bargains with health-care providers, with many plans successfully winning discounted price services from hospitals. There is something of a nationwide surplus of hospital beds, making competition for patients keen among hospitals. Summit operates 12 hospitals and 21 nursing homes or retirement hotels. In those facilities, Medicare accounts for about 42 percent of revenues, Medicaid (federal program for the indigent indigent 1) n. a person so poor and needy that he/she cannot provide the necessities of life (food, clothing, decent shelter) for himself/herself. 2) n. one without sufficient income to afford a lawyer for defense in a criminal case. ) 12 percent and private sector payments 46 percent. Summit has a relatively new management team in place. Dan Ameral become president in October 1989, replacing 13-year president and chief financial officer William Pierpoint, who had been with the company since it was founded in 1977. Speer replaced Darrel Neuenschwander, previous senior vice president and chief financial officer for five years. Don Freeberg, owner of 56.2 percent of Summit, remains chairman. Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. investor John Anderson John Anderson may be: Science:
With a battered if healing bottom line - Summit reported losses in both fiscal 1988 and fiscal 1989 - analyst coverage on Summit Health has atrophied at·ro·phied adj. Characterized by atrophy. . Whereas seven market analysts covered Summit in 1988, today none do. Investors looking to "bottom fish" for Summit Health shares will have to cast their lines on their own, unaided un·aid·ed adj. Carried out or functioning without aid or assistance: made an unaided attempt to climb the sheer cliff. by Wall Street analysts. "We are not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. by the institutions," said Speer last week. "Maybe now that we are showing some earnings, the analysts will come back." |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion