» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
TDN Services
Research millions of people and properties [+]
Monitor any person, property or company [+]

Skip Navigation LinksHome >
VOL. 126 | NO. 178 | Tuesday, September 13, 2011

Medicaid Growth Impacts Tenet 2011 Profit Forecast

AP

Print | Front Page | Email this story | Comments ()

DALLAS (AP) – Tenet Healthcare expects 2011 earnings at the lower end of its previously announced guidance, the hospital operator said Monday, largely because of the growth in Medicaid admissions, which offer relatively low reimbursement.

Tenet operates in Memphis St. Francis Hospital and St. Francis Hospital-Bartlett.

The Dallas company has said it expects adjusted earnings before interest, taxes, depreciation, and amortization to range between $1.17 billion and $1.27 billion.

Tenet said Medicaid patient admissions made up 75 percent of its growth so far in the third quarter. Medicaid is the state-federally funded program that provides health insurance for the needy, aged, blind and disabled. It offers lower reimbursement than private health insurance.

CEO Trevor Fetter said the company started some cost cutting measures in early August to reduce the impact Medicaid, and that the hospital expects a more visible impact from that in the fourth quarter.

The company also said its results are being unfavorably impacted by the effect of decreasing interest rates on medical malpractice and other discounted liabilities.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 38 38 20,670
MORTGAGES 45 45 23,790
FORECLOSURE NOTICES 24 24 3,071
BUILDING PERMITS 187 187 42,781
BANKRUPTCIES 57 57 13,237
BUSINESS LICENSES 23 23 6,645
UTILITY CONNECTIONS 30 30 7,819
MARRIAGE LICENSES 27 27 4,670