Westworld Community Healthcare Inc., a Lake Forest-based operator of rural hospitals and clinics, reported net income of $65,000 for the third quarter, down 93% from $999,000 for the third quarter of 1985. Most of the small profit came from a corporate cost-control program that included the layoff of about 200 employees during the third quarter.
The company also said that it is considering a restructuring of its $65 million in long-term debt.
Westworld said that third-quarter revenue from patient services was $48.97 million, up 26% from revenue of $38.8 million for the same period a year ago. The increase came primarily from recently acquired facilities.
For the first nine months of 1986, Westworld had a net loss of $1.8 million, compared to net income of $2.67 million for the same period of 1985. Revenue rose 61% to $148.6 million from $92.2 million.
Although Westworld's third-quarter results were down substantially, Vice President Glenn Caster said the company achieved a turnaround from its second quarter, when it lost $3.1 million.
Caster said that in order to adjust to industrywide health care changes, including an emphasis on outpatient care and modified Medicare reimbursement policies that took effect in the second quarter, Westworld has eliminated marginal services and laid off more than 500 employees over the last six months.
Michael D. Dunn, Westworld's chairman, president and chief executive, said in a prepared statement that "while our third-quarter results are not what we would call satisfactory, our employees, medical providers and community leaders have all pulled together and have performed extremely well in their efforts to adjust to a rapidly changing health care environment."
Caster said that to further boost the company's profits, Westworld officials are studying ways to restructure the firm's $65-million long-term debt and are considering sale and lease-back arrangements involving Westworld properties. But he added that, so far, there is "nothing on the table" for corporate action.