Community Psychiatric Posts Fourth-Quarter Loss

Reeling from the recession, bad publicity and a slump in the psychiatric care industry, Community Psychiatric Centers on Monday reported a $3-million fourth-quarter loss and said annual earnings had tumbled by nearly half.

The quarterly loss, which amounted to 6 cents a share, included a $14-million charge for uncollectible bills and contrasted with earnings of $20.7 million, or 45 cents a share, in the year-ago quarter. The company previously set aside $23 million in the third quarter to cover unpaid bills--about $7 million of that amount due to a dispute with the Canadian government over payment for patients sent to the United States for treatment.

Earnings for the fiscal year ended Nov. 30 fell 46% to $45.3 million, or 98 cents a share, from $83.2 million, or $1.80 a share, a year earlier. Revenue rose 4% to $396.6 million for the year.

The psychiatric hospital chain blamed the downturn on a cost-cutting squeeze by insurance companies, uncollectible debts, the recession and reports of alleged patient abuses and insurance fraud in the psychiatric care industry.