Business Briefs

Reported by Star-Bulletin staff & wire

Tuesday, October 7, 1997

Wal-Mart announces
major expansion

NEW YORK -- Wal-Mart Stores Inc. announced today an ambitious growth plan to open at least 140 new stores next year, expanding its already mammoth retailing empire.

Wal-Mart, the nation's largest retailer, also reported a rise in sales for September, but its results were on the low end of some retail analysts' estimates for the month.

In the United States, Wal-Mart plans to open 50 new discount stores, 10 Sam's Clubs and 120 to 125 Supercenters. About 90 of the new Supercenters, which include a discount store and a supermarket, will come from relocating or expanding existing stores. None of the new stores will be in Hawaii, a company spokeswoman said.

Wal-Mart also plans to open 50 to 60 new stores abroad.

Pay-phone companies
free to set prices

WASHINGTON -- The price of calls from pay phones could be going up as new provisions deregulating local pay-phone rates took effect today.

The Federal Communications Commission rules, part of the 1996 law deregulating the telecommunications industry, permit pay-phone owners to charge whatever they want for local calls. The FCC has argued that competition will keep a check on rates. Historically, most state regulators have capped such rates, usually at 25 cents a call.

Seven states have deregulated them, the FCC said. In five, Michigan, Iowa, Nebraska, North Dakota and Wyoming, the price is 35 cents a call. In the other two, Montana and South Dakota, it is 25 cents.

AOL forms venture
for Australia market

DULLES, Va. -- America Online Inc. said it formed a joint venture with Bertelsmann AG to market its service in Australia, part of a plan to increase its reach by adding international subscribers.

AOL, the No. 1 online service with more than 9 million customers, is already teamed up with German publishing giant Bertelsmann in offering European versions of the online service. Bertelsmann will invest at least $19.5 million in the Australian venture, while AOL is contributing its technology.

The new service is scheduled for release next year.

Affidavit: Columbia
cover-up 'systemic'

FORT MYERS, Fla. -- Executives of the nation's largest for-profit hospital chain threw auditors off track to cover up billing fraud and set aside money to repay overcharges in case they were caught, federal investigators said.

Court papers released yesterday offered new details of evidence the FBI obtained while getting an indictment in June against three executives of Columbia/HCA Healthcare Corp.

Investigators "uncovered a systemic corporate scheme perpetrated by corporate officers and managers of Columbia's hospitals, home health agencies and other facilities in the states of Tennessee, Florida, Georgia, Texas and elsewhere to defraud Medicare, Medicaid" and a military health program, the affidavit said.