Columbia / HCA’s Results Disappoint

Columbia/HCA Healthcare Corp., the largest U.S. operator of hospitals, said its fourth-quarter earnings fell far short of expectations as it also reported a setback in its attempt to settle fraud charges. Columbia said its profit from operations of $27 million, or 4 cents, for the latest quarter, compared with a loss of $404 million, or 63 cents, a year ago. That was far below the 23-cent average estimate of analysts surveyed by First Call Corp. Estimates ranged from 18 cents to 31 cents. Revenue edged up 1% to $4.42 billion. Nashville-based Columbia also said a federal court rejected a Justice Department motion to combine all Medicare fraud “whistle-blower” lawsuits against it, perhaps slowing the settlement of the case. Analysts have said Columbia would probably pay about $1 billion to settle allegations that it overbilled Medicare, causing investors to link a $1-billion letter of credit the company gave to the Justice Department to the possibility of ending the case. Columbia/HCA said it hoped the Justice Department would resubmit the request. The company also said it would buy back up to $1 billion of its shares. Columbia/HCA’s shares rose 38 cents to close at $18.75 on the NYSE.