Columbia Sets Restructuring Timetable, Plans Stock Buyback

Columbia/HCA Healthcare Corp., the world’s largest health-care company, on Wednesday disclosed a corporate restructuring timetable, set a big stock buyback and posted quarterly results in line with forecasts.

The Nashville-based company also said it will probably change its name, though not soon. It said it expects continued “substantial costs” from restructuring and a massive Medicare fraud probe the federal government began 18 months ago.

Columbia also said it expects cash proceeds on asset divestitures this year of more than $3 billion, and about $1 billion next year, after spinning off 65 of its 309 hospitals.

Moving to support its listless stock price, the company also said it will spend up to $1 billion to buy back shares. At current prices, that would represent about 5% of its $19-billion market capitalization.

Columbia reported second-quarter earnings from continuing operations of $191 million, or 30 cents a diluted share, excluding costs tied to restructuring and the probe.

The results matched expectations of Wall Street analysts and was well below the year-ago level of $385 million, or 58 cents a share.

Revenue from continuing operations was $4.8 billion for the quarter, roughly flat compared with a year ago.

Columbia shares rose $1.13 to close at $30.06 in New York Stock Exchange trading.