HealthTrust Signs National Chain Tenet Healthcare to Contract
Aug 7 15
HealthTrust has signed national chain Tenet Healthcare to a contract. HealthTrust announced that it will provide its supply chain cost management services to the hospital chain for five years. HealthTrust beat out MedAssets for the contract but Tenet will continue to use MedAssets for revenue cycle management services.
Tenet Healthcare Eyes Acquisitions
Aug 4 15
Tenet Healthcare Corp. (NYSE:THC) is seeking acquisitions. Trevor Fetter, Chairman and Chief Executive Officer of Tenet Healthcare said, "We look forward to expanding these relationships through acquisitions and development opportunities, and we also believe USPI remains very well positioned to add new health system partners. For example, Dignity and Ascension are both very important partners of USPI and we are pleased to deepen our relationship with these two outstanding organizations through the Carondelet transaction I mentioned earlier."
Tenet Healthcare Corporation Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Earnings Guidance for the Third Quarter of Fiscal 2015; Revises Earnings Guidance for the Full Year Ending December 31, 2015
Aug 3 15
Tenet Healthcare Corporation announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported net operating revenues of $4,492 million compared to $4,038 million a year ago. Operating income was $164 million compared to $207 million a year ago. Net loss from continuing operations, before income taxes was $54 million compared to profit of $17 million a year ago. Net loss attributable to the company's common shareholders was $61 million compared to $26 million a year ago. Loss per diluted share was $0.61 compared to $0.27 a year ago. Capital expenditures were $175 million compared to $242 million a year ago. Adjusted EBITDA was $568 million compared to $460 million a year ago, which included $16 million from USPI and Aspen for the last 2 weeks in June. Excluding these earnings, the company delivered EBITDA of $552 million. The majority of the company’s revenue growth was driven by a 2.3% increase in same-hospital adjusted patient admissions, a 4.5% increase in same-hospital net patient revenue per adjusted patient admission, and a $28 million increase in revenue at Conifer from non-Tenet customers, representing a growth rate of 19.0%. The company generated adjusted net income from continuing operations of $76 million, or $0.75 per diluted share, in the second quarter of 2015. This excludes $136 million, or $1.35 per share, in after-tax impairment charges, restructuring charges, acquisition-related costs, and litigation and investigation costs. The company generated adjusted net income from continuing operations of $17 million, or $0.17 per diluted share, in the second quarter of 2014, excluding the comparable items that totaled $27 million after-tax, or $0.28 per share. Adjusted net cash provided by operating activities from continuing operations was $467 million against $318 million a year ago. Purchases of property and equipment from continuing operations were $175 million against $242 million a year ago.
For the six months, the company reported net operating revenues of $8,916 million compared to $7,963 million a year ago. Operating income was $454 million compared to $377 million a year ago. Net income from continuing operations, before income taxes was $37 million compared to $5 million a year ago. Net loss attributable to the company's common shareholders was $14 million compared to $58 million a year ago. Loss per diluted share was $0.14 compared to $0.60 a year ago. Net cash provided by operating activities was $353 million compared to $247 million a year ago. Purchases of property and equipment continuing operations was $359 million compared to $523 million a year ago. Capital expenditures was $359 million compared to $523 million a year ago. Adjusted EBITDA was $1,097 million compared to $847 million a year ago. The year-over-year revenue growth also benefitted from acquisitions, joint ventures and newly constructed facilities. Adjusted net cash provided by operating activities from continuing operations was $447 million against $343 million a year ago. Purchases of property and equipment from continuing operations were $359 million against $523 million a year ago. The company generated EBITDA growth of $108 million or 23% compared to last year. This performance was driven by a combination of same-hospital volume growth and pricing, the recognition of $45 million in California Provider Fee revenues and 36% EBITDA growth by Conifer.
The company revised earnings guidance for the third quarter and full year ending December 31, 2015. During 2015, the company expects to generate net operating revenues of $18.1 billion to $18.5 billion, adjusted EBITDA of $2.225 billion to $2.325 billion, adjusted free cash flow of $225 million to $425 million, and adjusted earnings per share of $1.32 to $2.21. This includes approximately $65 million of electronic health record incentives. Net cash provided by operating activities of $1,119 million to $1,229 million. Adjusted net cash provided by operating activities from continuing operations of $1,225 million to $1,325 million. Purchases of property and equipment from continuing operations of $1,000 million to $900 million. Adjusted free cash flow from continuing operations of $225 million to $425 million. At the midpoint of the range, the pro forma EBITDA margins for 2015 would have been 13.1%, up 110 basis points from the guidance provided earlier this year.
In the third quarter of 2015, the company expects to generate net operating revenues of $4.65 billion to $4.85 billion, Adjusted EBITDA of $550 million to $600 million and Adjusted earnings per share of $0.05 to $0.49. This includes approximately $8 million of electronic health record incentives.
Tenet Healthcare to Manage Hi-Desert Medical Center Operations
Jul 23 15
Tenet Healthcare Corporation has announced an agreement with the Hi-Desert Memorial Health Care District, under which Tenet will manage the operations of Hi-Desert Medical Center and its related healthcare facilities. Tenet will now manage the operations of the 59-bed primary care hospital and the 120-bed skilled nursing facility on the hospital campus, as well as associated programs that were previously operated by the hospital. The district will continue to operate two family health clinics in the area. The arrangement is structured as a long-term lease agreement, which was approved by district voters on June 23 by a margin of 90.6% to 9.4%. Under this new operating arrangement, Hi-Desert Medical Center will continue to have its own medical staff and governing board. The hospital's new governing board includes representatives from the district, physicians from the hospital's medical staff and local community and business leaders. Tenet will offer employment to all hospital employees in accordance with its customary hiring practices and policies. In addition, Tenet has committed to provide much-needed funding, including $32 million in the first three years of the lease, for new projects, technologies such as enhanced information systems and physician recruitment and service line expansion.
Wellstar In Talks To Acquire Five Metro Atlanta Hospitals
Jul 23 15
Wellstar Health System, Inc. said that it is beginning negotiations with Tenet Healthcare Corp. (NYSE:THC) to buy its metro hospitals, including Atlanta Medical Center in downtown and Roswell’s North Fulton Hospital. The latter is considered the biggest prize among the group because of its location in the affluent northern Atlanta suburbs. Wellstar and Tenet issued a statement Thursday confirming the start of “exclusive, non-binding discussions’’ about a potential sale of Tenet’s Atlanta-area hospitals and other facilities to WellStar. “This is to ensure that these hospitals and facilities are best positioned to meet the needs of their communities and continue delivering high-quality health care for many years to come,’’ said the statement. WellStar and Tenet declined further comment about the potential deal.