NU Online News Service, Feb. 20, 3:49 p.m. – PlanVista Corp., Tampa, Fla., a company that helps run managed care provider networks, is reporting a $5.7 million net loss for the fourth quarter of 2001 on $8.2 million in operating revenue, compared with a $67 million net loss on $7 million in operating revenue for the fourth quarter of 2000.
Net results for the latest quarter include $4 million in interest and a $2.8 million loss on the sale of discontinued operations, and net results for the comparable quarter in 2000 include a $63 million loss on the discontinued operations.
Operating earnings before interest, depreciation, amortization and taxes fell to $500,000 for the fourth quarter, from $2.8 million, PlanVista says.
A new, Internet-based system for applying the correct network discounts to medical claims is doing well, and PlanVista signed 47 new accounts during the fourth quarter, the company says.
But PlanVista believes it could have done better if it had less debt on its balance sheet, according to Phillip Dingle, the company’s chairman.
“Our competition used our balance sheet against us in the pursuit of new business,” Dingle says in a statement accompanying the latest earnings release.
PlanVista recently announced plans to exchange $29 million in bank debt for convertible preferred stock. It hopes to complete the exchange around March 15, the company says.
Completing the debt restructuring should help PlanVista bring in more new business, Dingle says.