NME Profit Off 29% in Quarter
- Share via
National Medical Enterprises Inc. reported a 29% drop in first-quarter profit, which it attributed to poor performance at its psychiatric hospitals.
The Santa Monica-based concern posted earnings of $50.6 million, or 30 cents a share, down from $71.6 million, or 41 cents, a year earlier.
Revenue for the quarter ended Aug. 31 fell to $941.5 million from $989.5 million in the 1991 period.
Revenue from psychiatric hospitals declined 47% from last year, and operating profit fell 95%.
NME owns and operates acute care, psychiatric and physical rehabilitation hospitals and substance abuse treatment centers throughout the United States and in several locations overseas.
On Monday, NME filed a motion to dismiss a lawsuit brought in July by eight insurance companies, which had charged the company with billing fraud.
NME said the suits failed to list specific cases of alleged fraudulent activity. “It is absurd to even suggest, as the insurance companies have, that every claim paid by them was for unnecessary treatment,” said Richard K. Eamer, NME’s chairman and chief executive.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
