Westworld’s Net Zooms 545% in Fourth-Quarter

The growing demand for rural health care services boosted Westworld Community Healthcare Inc.’s annual earnings by 545% and increased fourth-quarter earnings 14 times over the last quarter of 1983.

The fast-growing, 3-year-old Lake Forest company also announced the acquisition of Kelling Hospital in Waverly, Mo., for $1.2 million in cash and notes. The acquisition brings to 26 the number of health care systems operated by the company in 11 states, according to Walter Kaczor, chief financial officer. Westworld plans to expand Kelling Hospital operations to serve a number of additional communities in west-central Missouri.

Net income for the fourth quarter ended Dec. 31 was $561,000, up from the $39,000 reported for the fourth quarter of fiscal 1983. Revenues from patient services increased 165% to $18.8 million from $7 million.

For the year, Westworld posted net income of $1.8 million, a more than fivefold increase from the $279,000 reported in fiscal 1983. Revenues for the year rose 191% to $50.5 million, from $17.3 million in fiscal 1983.

Westworld provides a wide range of health care services including nursing homes and alcohol treatment programs, according to company officials. “Our concept is to deliver total health care services to rural communities,” said Kaczor in a telephone interview Friday.

He said that in most cases Westworld provides the only health care services to the communities, which typically range in size from about 5,000 to 15,000 residents.

Westworld stock closed at $22.25 in over-the-counter trading Friday, up 25 cents.