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QUORUM HEALTH GROUP, INC. REPORTS FAVORABLE YEAR-END RESULTS

 NASHVILLE, Tenn., Aug. 18 /PRNewswire/ -- Quorum Health Group, Inc. today announced results for its fourth quarter and fiscal year ended June 30, which included record revenues and earnings.
 For the fiscal year, net operating revenue increased 98 percent over the previous year to $343,132,000, vs. net revenue of $173,219,000 a year ago. The large increase in net revenue primarily reflects the results of hospital acquisitions in fiscal year 1992 and the acquisition of Hospital Management Professionals, Inc. (HMP).
 Earnings before interest expense, minority ownership interest, income taxes, depreciation and amortization (EBITDA) were $56,259,000, a 145 percent increase over last year's EBITDA of $22,937,000. Net income was $14,299,000, which included an extraordinary loss from the retirement of debt in the amount of $1,591,000, net of income taxes. This represents an increase of 253 percent compared with net income of $4,048,000 for the previous fiscal year.
 Primary earnings per share rose 140 percent from $.15 last year to $.36 this fiscal year. Fully diluted earnings per share were $.34, which included $.03 per share for the extraordinary loss, compared with $.15 last year.
 "Quorum's revenue was expected to increase substantially this year because it was the first full year of operations with all of our acquired hospitals, but we are especially proud of the fact that we successfully controlled our costs during this period of rapid growth," said James E. Dalton Jr., president and chief executive officer of the Nashville-based hospital services company. "Total operating expenses only increased $137 million during a year in which net revenues rose $170 million."
 Three of Quorum's four owned hospitals were acquired during fiscal 1992, making fiscal 1993 the first full year to include their results in the company's operations. The hospitals are Concho Valley Regional Hospital, San Angelo, Texas; Park Medical Center, Columbus, Ohio; and Flowers Hospital, Dothan, Ala. Quorum also owns ParkView Regional Medical Center in Vicksburg, Miss.
 The company's management services subsidiary, Quorum Health Resources, Inc., acquired HMP in July 1992. Those results also are included for the first time in fiscal 1993's operations.
 "We are extremely pleased with the successful integration of HMP and Quorum Health Resources," said Dalton. "We maintained our excellent rate of contract retention and renewal of our existing hospital management contracts, and we had a very good year signing new management contracts and offering new services."
 For the fourth quarter, net operating revenue was $90,715,000, compared with revenue of $63,571,000 during the same quarter last year. EBITDA was $14,828,000 for the quarter, up from $9,415,000 during the same quarter a year ago. Primary earnings per share were $.10 and fully diluted earnings per share were $.09 for the quarter.
 In December 1992, Quorum Health Group issued $100 million in senior subordinated notes maturing in 2002. On Aug. 16, Quorum signed a definitive purchase agreement with Charter Medical Corporation (AMEX: CMD) under which an affiliate of Quorum Health Group will buy for $340 million the stock of Charter's subsidiaries that own 10 acute care hospitals and related assets. The transaction is expected on or before Sept. 30 and is subject to the satisfaction of customary closing conditions and obtaining certain regulatory approvals.
 Quorum Health Group, Inc. is a privately held firm that owns and operates acute care hospitals. Quorum Health Resources, Inc., a subsidiary, is the nation's largest hospital management company, with client hospitals throughout the United States.
 -0- 8/18/93
 /CONTACT: Mike Wiley, 615-340-5735, or Sandy Anthony, 615-340-5737, both of Quorum Health Group/
 (CMD)


CO: Quorum Health Group, Inc. ST: Tennessee IN: HEA SU: ERN

BN-BR -- AT009 -- 4034 08/18/93 16:08 EDT
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Publication:PR Newswire
Date:Aug 18, 1993
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