Managed Care Provider Posts $6.5 Million Profit

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Managed care provider Prospect Medical Holdings Inc. said Monday it turned from a loss to a profit in the fourth quarter as its revenue grew by nearly a third due to an acquisition.

The Los Angeles-based company reported after market closed net income of $6.5 million (32 cents per share) for the quarter ended Sept. 30, compared with a net loss of $34.4 million (-$3.25) a year ago. Last year, the company took a pre-tax write down of goodwill and other intangibles related to its independent physician association operation.

The company, which operates four Los Angeles-area community hospitals and a 14,000-physician HMO network, saw revenues rise 31 percent to $87.7 million, primarily driven by its 2007 acquisition of Alta Hospitals System. The company also owns a controlling stake in Culver City’s Brotman Medical Center, which is in Chapter 11 reorganization.

For the full fiscal year, the company reported a net loss of $2.6 million (-20 cents) compared to a $34.6 million (-$4.08) net loss in fiscal 2007.

Prospect’s shares before the announcement closed down 5 cents, or 2 percent, to $2.10 on the American Stock Exchange.

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