HEALTH

Hospital Company to Restate Earnings: National Medical Enterprises Inc. said it will issue the first-quarter revision due to its recent proposed settlement of two insurance company lawsuits for up to $125 million. The Santa Monica-based hospital operator said that on the recommendation of its auditors, it will increase its reserves for “unusual litigation” by at least $125 million. NME on Tuesday posted preliminary earnings of $42 million for the quarter ended Aug. 31, before an accounting gain, down from $50.6 million a year ago. The company still faces numerous lawsuits from insurers and patients, stemming from allegations of billing fraud and patient mistreatment at its psychiatric hospitals. The U.S. government is conducting a criminal investigation of NME.