Medical blog » Tenet

Tenet 4Q Loss Narrows On Higher Prices; Sees More Red Ink

admin — Tue, 24 Feb 2009 11:24:34 +0000

Tenet Healthcare Corp.’s
(THC) fourth-quarter loss narrowed as the hospital
operator saw improved results amid higher prices.
The company also projected a 2009 loss bigger than expectations,
, according to
Thomson Reuters. Revenue is seen rising to
$9 billion to $9.2 billion
, in line
with estimates, with admissions growth of as much as 1%. Last year’s admissions
increase was 1.2%.
Tenet, which has been struggling to gain its footing after settling government
probes in 2006 over past pricing plans, has changed management, shed hospitals
and made improvements that earned it good-quality ratings from the Department of
Health and Human Services. Still, it faces high supply costs, delays in key
asset sales and high debt levels.
, or
a share, compared with a
year-earlier net loss of
, or
a share. The latest quarter
included a
write-down from the sale two weeks ago of facilities at
the University of Southern California.
Revenue increased 5.7% to
$2.2 billion
.
$2.21 billion
.
Hospitals have struggled for years with tepid volumes of commercially insured
patients and large numbers of uninsured patients who can’t pay their medical
bills. Now, the credit crisis has prompted many hospitals to delay capital
spending and the recession threatens to further erode business.
Same-hospital adjusted earnings before interest, taxes, depreciation and
amortization, the industry benchmark used to track the financial performance of
those hospitals under a company’s wing for more than a year, climbed 27%.
Same-hospital admissions edged down 0.2%, as more-profitable commercial
managed-care admissions fell 3% and government managed-care admissions increased
10.1%. But inpatient revenue per admission increased 3.6%, with the increase for
outpatients at 7%.
The company’s bad debt expense increased 23%, hurt in part by a decline in its
self-pay collection rate. There is concern that the weak economy, including job
losses in particular, will lead to more uninsured patients, uncompensated care
and bad debt.
Shares were up 12.2% at
$1.10
a share premarket. The stock has lost more than
three-quarters of its value since August.
, Dow Jones Newswires; 201-938-2310; shirleen.dorman@
dowjones.com
(END) Dow Jones Newswires
02-24-09 0825ET
Copyright (c) 2009 Dow Jones & Company, Inc.

Letter: Tenet would have preferred a smooth transition of hospital

admin — Sat, 22 Nov 2008 03:58:57 +0000

Since announcing our intention not to renew the lease for Community Hospital of Los Gatos, we have diligently worked with the hospital owner, HCP, as it sought a new facility operator. Once informed that HCP had selected El Camino Hospital to fill this role, we engaged in negotiations with the hope of transitioning a fully functional and operating hospital to ECH.
Unfortunately, we were unable to reach an agreement with ECH. After being informed by HCP that an operating facility would not be expected or required, we began the legally required notifications for facility closure. This included giving the statutory 90-day notice that we will be closing the hospital’s emergency department. We announced the April closing date because we need time to vacate the property in advance of the expiration of our lease in May.
Frankly, we are disappointed that the decision to close the hospital may have been misinterpreted by some as a unilateral action by Tenet. Nothing could be further from the truth. We would have preferred a smooth transition without closure, which is consistent with our history of hospital transitions within California, but we do not own the facility and that decision was not ours to make at the termination of our lease.
Over the next several weeks, we will work to facilitate transfers to other Tenet hospitals for interested CHLG employees, offering employee workshops on rВžsumВž writing and interviewing skills
and holding job fairs for area employers to assist employees in their job searches. In addition, severance packages, which feature salary and benefits continuation, will be provided to regular, full-time and part-time employees to aid them in their transition from the hospital. Of course, all of these actions will be in accordance with the company’s existing labor agreement and Tenet policy.
We will work diligently and tirelessly to ensure a successful transition for the long-term benefit of the community.
Gary Honts,

Tenet Healthcare records Q3 profit

admin — Fri, 22 Aug 2008 17:51:38 +0000

posted earnings of $104 million, or 22 cents a share, for the third quarter. That is up from a net loss of $59 million, or 12 cents a share, during the same quarter last year.
Dallas-based Tenet (NYSE: THC) attributes its third quarter income rise to pretax gains on investment sales, valued at $140 million.
During the quarter, the hospital operator experienced 1.7 percent growth in same-hospital total admissions, 2 percent growth in same-hospital paying admissions, a 1.1 percent surge in same-hospital surgeries and a 2.6 percent jump in same-hospital inpatient surgeries, Tenet said.
The number of hospitals operating under Tenet fell during the quarter to 50 as Tenet reclassified Irvine Regional Hospital and Medical Center and Community Hospital of Los Gatos as discontinued operations.
Tenet operates 11 hospitals in South Florida: four in Miami-Dade County, six in Palm Beach County and one in Broward County.
Tenet’s net operating revenue hit $2.2 billion during the third quarter, up from $2.1 billion during the same period last year.
Looking forward, Tenet said it has revised its earnings expectations for fiscal year 2008, and now expects to break even, at $75 million. The hospital operator said adjusted EBITDA has been revised to fall in the range of $700 million to $750 million.

Tenet Subsidiary to Close Irvine Regional Hospital and Medical Center

admin — Tue, 05 Aug 2008 07:23:10 +0000

Tenet Healthcare Corporation (NYSE: THC) today announced that a company
subsidiary plans to close Irvine Regional Hospital and Medical Center,
including its emergency room, on Jan. 15, 2009. As required by state
law, the Tenet subsidiary is providing 90 days notice to local and state
authorities.
The building is owned by HCP, a real estate investment trust located in
Long Beach, Calif. Tenet had previously announced its intention to allow
its lease at Irvine Regional to expire in Feb. 2009.
Tenet has been advised by HCP that its new lessee will not accept an
operating hospital when its lease commences with HCP. Because of this,
HCP has requested Tenet to return the Irvine property as a closed
hospital. In order to ensure that Tenet meets this obligation, the
facility will be closed on Jan. 15, 2009.
Prior to the closure, Tenet will work to facilitate transfers for its
current Irvine Regional employees to available positions at other Tenet
hospitals in accordance with its existing labor agreements and Tenet
policy.
Tenet Healthcare Corporation, through its subsidiaries, owns and
operates acute care hospitals and related ancillary health care
businesses, which include ambulatory surgery centers and diagnostic
imaging centers. Tenet is committed to providing high quality care to
patients in the communities we serve. Tenet can be found on the World
Wide Web at
.
Some of the statements in this release may constitute forward-looking
statements. Such statements are based on our current expectations and
could be affected by numerous factors and are subject to various
risks and uncertainties discussed in our filings with the Securities and
Exchange Commission, including our annual report on Form 10-K for the
year ended Dec. 31, 2007, our quarterly reports on Form 10-Q and
periodic reports on Form 8-K. Do not rely on any forward-looking
statement, as we cannot predict or control many of the factors that
ultimately may affect our ability to achieve the results estimated. We
make no promise to update any forward-looking statement, whether as a
result of changes in underlying factors, new information, future events
or otherwise.
erschienen am 07.10.2008 um 20:30 Uhr

Tenet Healthcare to close Irvine Regional Hospital

admin — Sat, 26 Jul 2008 00:33:06 +0000

Airbus, the world’s largest maker of commercial aircraft, received 79% fewer orders in September compared with a year earlier amid a slowdown in demand from airlines.
Customers signed contracts last month for 29 planes, compared with 141 orders a year earlier. Orders from Jan. 1 to Sept. 30 fell 13% to 737 aircraft, Toulouse, France-based Airbus said.
Airbus has a full-year order target of 850 aircraft. Chief Executive Tom Enders said July 12 that as much as 27% of Airbus’ backlog might be lost if airlines cancel contracts.
RealNetworks can’t sell a program that copies DVDs to computer hard disks because it may violate copyright laws, a federal judge said.
The Motion Picture Assn. of America, which contends the Seattle company’s RealDVD program will facilitate piracy, persuaded U.S. District Judge Marilyn Hall Patel to keep in place an Oct. 4 temporary restraining order. Patel said she would hold a hearing on whether the product violates federal copyright laws.
Yum Brands Inc., the owner of the Pizza Hut, Taco Bell and KFC chains, said third-quarter profit rose 4% on higher sales at its international divisions, including China.
Net income increased to $282 million, or 58 cents a share, from $270 million, or 50 cents, a year earlier, Louisville, Ky.-based Yum said. Sales climbed 11% to $2.84 billion.
The chairwoman of the National Automobile Dealers Assn. says the credit crunch and economic problems are likely to cause 700 auto dealers to go under this year.
Speaking to the Automotive Press Assn. in Detroit, Annette Sykora urged fast government action on putting a $700-billion financial industry rescue plan in place.
Porsche said it slightly increased its share in fellow German automaker Volkswagen, in which it plans to take a majority before the end of the year.
Porsche Automobil Holding is Volkswagen’s biggest shareholder and said last month that it had increased its stake to just over 35%.
Spokesman Albrecht Bamler said Porsche bought additional Volkswagen shares off-market, “significantly under the current market price.”

Tenet subsidiary announces closing of Irvine Regional Hospital

admin — Sat, 07 Jun 2008 10:05:55 +0000

effective Jan. 15.
Tenet added that it will work with hospital employees to find them positions at other Tenet-owned or operated hospitals.
To comply with state law Dallas-based Tenet (NYSE: THC) is providing local authorities with a 90-day notice of the layoffs.
The building housing the hospital is owned by Long Beach-based real estate investment trust HCP. Tenet had previously said it planned to let its lease at the hospital expire in February 2009.
Tenet said it's been told that the new lessee of the building “a new lessee will not accept an operating hospital when its lease commences with HCP.”
HCP asked Tenet to return the property as a closed property. The facility will officially be shut down on Jan. 15, 2009.

Tenet Healthcare narrows loss as hospital visits increase 7:30 AM CT

admin — Mon, 26 May 2008 01:23:59 +0000

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Tenet to sell USC University Hospital for $275 million

admin — Wed, 05 Mar 2008 18:39:44 +0000

NEW YORK (MarketWatch) — Tenet Healthcare Corp.
,
,
said Tuesday it has signed an agreement to sell USC University Hospital and its Kenneth Norris Jr. Cancer Hospital to the University of Southern California $275 million cash. The Dallas-based health-care company said $30 million of the sale price will be deferred and placed in an escrow account for up to four years. Tenet’s subsidiaries will retain substantially all of the hospitals’ working capital, which is expected to result in approximately $35 million of incremental cash proceeds, which Tenet said it plans to use “for general corporate purposes.” The deal is expected to close by March 31 and will result in a fourth-quarter impairment charge of approximately $40 million, Tent said.

Tenet subsidiary announces closing of Irvine Regional Hospital

admin — Sat, 09 Feb 2008 14:18:00 +0000

and Medical Center in Irvine, Calif., effective Jan. 15.
Tenet added that it will work with hospital employees to find them positions at other Tenet-owned or operated hospitals.
To comply with state law Dallas-based Tenet (NYSE: THC) is providing local authorities with a 90-day notice of the layoffs.
The building housing the hospital is owned by Long Beach, Calif.-based real estate investment trust HCP. Tenant had previously said it planned to let its lease at the hospital expire in February 2009.
Tenant said it's been told that the new lessee of the building “a new lessee will not accept an operating hospital when its lease commences with HCP.”
HCP asked Tenet to return the property as a closed property. The facility will officially be shut down on Jan. 15, 2009.

Tenet rises after announcing hospital closing

admin — Sat, 26 Jan 2008 14:13:07 +0000

Shares of Tenet Healthcare Corp. edged higher Wednesday after the hospital operator said it will close a hospital in Irvine, Calif., in early 2009.
After the markets closed on Tuesday, the company announced plans to close Irvine Regional Hospital and Medical Center on Jan. 15, 2009. Tenet is letting its lease on the property expire and was told by owner HCP Inc. that the new lessee does not want an operating hospital on the property.
Tenet said in July that it would not renew the lease on the 176-bed hospital as part of a legal settlement with HCP, a health care real estate investment trust.
Shares of Dallas-based Tenet rose 7 cents, or 1.7 percent, to $4.29.
Tenet declined to provide revenue or admissions figure for Irvine Regional Hospital. Kaiser Permanente opened a hospital across the street in May, Tenet said, and patient volumes fell sharply as a result. In a July conference call, the company estimated that 30 percent of its Irvine patients were covered by Kaiser’s insurance.