National Medical Enterprises Inc. reported a 29% drop in first-quarter profit, which it attributed to poor performance at its psychiatric hospitals.
The Santa Monica-based concern posted earnings of $50.6 million, or 30 cents a share, down from $71.6 million, or 41 cents, a year earlier.
Revenue for the quarter ended Aug. 31 fell to $941.5 million from $989.5 million in the 1991 period.
Revenue from psychiatric hospitals declined 47% from last year, and operating profit fell 95%.
NME owns and operates acute care, psychiatric and physical rehabilitation hospitals and substance abuse treatment centers throughout the United States and in several locations overseas.
On Monday, NME filed a motion to dismiss a lawsuit brought in July by eight insurance companies, which had charged the company with billing fraud.