Nov 4 Tenet Healthcare Corp said its
third-quarter net income slid from a year earlier due to costs
related to its acquisition of smaller hospital chain Vanguard
Health Systems Inc.
Tenet completed the acquisition of Vanguard for about $1.8
billion on Oct. 1 to expand into new markets and position itself
to benefit from an increase in patients who have health
insurance under President Barack Obama's healthcare reform.
Tenet on Monday said the integration of Vanguard was proceeding
Income excluding special items rose in the third quarter as
the hospital operator reduced expenses and improved revenue
Dallas-based Tenet said income from continuing operations,
excluding acquisition-related, legal, restructuring and other
costs, rose to $46 million, or 45 cents a share, from $35
million, or 33 centsa share, the year before.
Earnings before interest, tax, depreciation and amortization
and excluding special items increased 7.1 percent to $288
Net income fell to $28 million, or 27 cents a share, from
$40 million, or 37 cents, a year ago. Net operating revenue in
the quarter rose 8.4 percent to $2.41 billion.
Tenet said its inpatient admissions fell 2.6 percent in the
third quarter, offsetting a 3.5 percent rise in outpatient
visits. The combined figure, called adjusted admissions,
declined 0.5 percent.
Hospitals are struggling with declining admissions as many
Americans continue to stay away from the doctor due to lack of
insurance or high deductibles on their plans. But anticipation
of more paying customers under health reform has buoyed the
shares of publicly traded hospital companies this year.
Tenet's uncollected bills increased to $210 million in the
latest quarter, up $4 million from a year earlier.
The company expects admissions to grow and uncollected bills
decline when more Americans become eligible for insurance
starting in 2014 through exchanges set up under the healthcare