Healthscope posted an annual profit of $72.3 million for 2008/09, up from $64.4 million in the previous financial year.
Healthscope also said it would raise fresh cash to fund future acquisitions, help pay for newly acquired pathology and medical centres and expand its hospitals.
The company, which operates 43 private hospitals in Australia, will place new shares to institutions and raise further funds from a share purchase plan for retail investors.
Retail investors on the company register by August 28 will be able to subscribe to up to $15,000 worth of new Healthscope shares under the share purchase plan.
The new shares will not be entitled to the 2009 final dividend.
Healthscope shares entered a trading halt on Wednesday ahead of the announcement of the raising.
The company also said it would acquire Health of Australia Holdings, which has annual revenues of about $30 million and operates Victorian private pathology provider, Analytical Reference Laboratories (ARL).
"The purpose of this fundraising is, less than one third of it is going to be for the acquisition of ARL," company chief financial officer Gary Kent told analysts.
"The rest of it really is for acquisitions we have already been making last year, but also our quite extensive program for the expansion of our hospitals."
Meanwhile, Healthscope's full year revenue rose 11.2 per cent to $1.654 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) were up 15.4 per cent to $228.3 million.
Healthscope said its outlook was for growth in market share and improved margins in 2009/10.
"We have an increasing market growth and we see that continuing for the foreseeable future, certainly this next 12 months," said managing director Bruce Dixon.
"Results were achieved in difficult environment, not so much hospitals, but certainly pathology with the funding cuts last year and no doubt we have got funding cuts this year.
"But the sheer market capture we are getting is offsetting those head winds we have got in terms of funding cuts," Mr Dixon said.
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