The Company recorded a loss from continuing operations of $0.18 per share in the fourth quarter of the year ended August 31, 2008 compared to income from continuing operations of $0.10 per share in the fourth quarter of the previous year. The loss in the current quarter was primarily due to the Company fully reserving all its accounts receivable in the Medical Dispute Resolution (MDR) process. All per share amounts in this release are fully diluted.
Net patient service revenues for the year ended August 31, 2008 increased by $17.4 million, or 41%, from $42.8 million in 2007 to $60.3 million in 2008. The increase in revenues is primarily due to an increase in inpatient cases. The Company also recorded $18.0 million in additional revenues during the year ended August 31, 2008 on account of (1) closed books of business where total collections had exceeded the revenue recorded and (2) settlements reached with insurance carriers for MDR accounts receivable. This increase of $18.0 million was offset by fully reserving $18.5 million of our MDR receivables at August 31, 2008 due to a recent ruling by the Texas Third Court of Appeals that raised uncertainties regarding those receivables and due to the fact that settlements with insurance carriers have come to a virtual stop. The net effect of the write down in the fourth quarter of the fiscal year ended August 31, 2008 was $4.1 million, or $0.25 per share.
Net income for the year ended August 31, 2008 was $8.4 million, or $0.51 per share, versus $4.2 million, or $0.26 per share, in the previous year.
Dynacq Healthcare, Inc. ("www.dynacq.com") is a holding company.
Its subsidiaries provide surgical healthcare services and related
ancillary services through hospital facilities.
Dynacq Healthcare, Inc., Houston
Philip S. Chan, 713-378-2000
Dynacq Healthcare, Inc.