IMGCAP(1)]
Tenet Healthcare Corp. posted a small net loss in the second quarter and raised its full-year outlook as it clamped down on costs. Tenet reported slightly higher bad debt expenses and soft commercial managed care admissions weighed on the bottom line during the quarter.
Tenet, like all hospital operators in the recession, has seen more patients without insurance or the means to pay for health care. But Tenet said it is confident that strict cost controls and higher outpatient volumes will offset those pressures going forward.
The company reported a 50.9% rise in adjusted earnings before interest, taxes, depreciation and amortization to $246 million for all its hospitals in the second quarter, compared with a year ago.
"That's pretty astounding in a recession," says Sheryl Skolnick, an analyst at CRT Capital Group. "Bad debt did rise, but the bottom line is that it rose so much less than anybody thought it would."
Tenet reported a net loss in the second quarter of $15 million, the same as its net loss in the same period a year ago. It projected a loss per share of 3 cents, in line with the
average analyst estimate, according to Reuters Estimates.
Net operating revenue from same-hospital continuing operations was projected to rise 4.5% to $2.21 billion, boosted by strong growth in outpatient volumes as well as pricing increases.
