Tenet turns 2Q profit on greater revenue per visit
Hospital operator Tenet Healthcare Corp. on Tuesday reported a profit in the second quarter as it received more revenue per patient visit.
Tenet posted net income of $25 million, or 5 cents per share. That compares with a loss of $15 million, or 3 cents per share, one year ago. Revenue rose 3 percent, to $2.3 billion from $2.23 billion.
Analysts expected a profit of 6 cents per share and $2.32 billion in revenue, according to Thomson Reuters. The estimates typically exclude items.
The company runs 49 hospitals around the country with a total of 13,420 beds. It said inpatient revenue rose 3 percent to $1.48 billion and outpatient revenue rose 4 percent to $733 million during the second quarter. Inpatient admissions fell 2 percent, but adjusted patient admissions — a figure that includes both inpatient and outpatient visits — declined less than one percent.
Revenue per admission grew about 5 percent, as did inpatient revenue per day of patient stay.
The company also reported lower operating expenses.
Tenet said it will increase its financial flexibility by offering to buy back as much as $800 million in notes due in 2013. The offer will expire Aug. 30. It will pay for the tender offer by selling $600 million in senior notes due in 2020. Those notes will be sold to private investors.
Tenet shares fell 20 cents, or 4.4 percent, to $4.39. They fell as much as 7.4 percent in morning trading.