VOL. 127 | NO. 41 | Wednesday, February 29, 2012
Tenet Records Q4 Loss on Debt Retirement Charge
DALLAS (AP) – Tenet Healthcare Corp. on Tuesday reported a fourth quarter loss, as a $117-million debt refinancing charge outweighed the hospital operator's gains in revenue and patient admissions.
Tenet operates Saint Francis Hospital in Memphis and Saint Francis Hospital-Bartlett.
The Dallas company said Tuesday it lost $76 million, or 17 cents per share, in the three months that ended Dec. 31. That compares with earnings of $74 million, or 14 cents per share, in the final quarter of 2010.
Excluding the charge and other adjustments, Tenet reported adjusted income from continuing operations of 10 cents per share.
Revenue rose nearly 5 percent to $2.41 billion, from $2.3 billion in the year-ago period.
Analysts surveyed by FactSet expected, on average, adjusted earnings of 14 cents per share, on $2.42 billion in revenue.
Tenet operates 50 hospitals in 11 states and 99 outpatient care centers. It said it took the $117-million charge for the early extinguishment of debt as part of a strategy to extend debt maturities and reduce future interest expense.
The company said adjusted admissions, or admissions at hospitals open at least a year, increased 1.3 percent. Net patient revenue per adjusted admission rose 2.3 percent to $11,633 compared to the final quarter of 2010, due mainly to better contract terms with commercial managed care insurance companies.
Tenet's bad debt expense, or its unpaid collections, fell 2.6 percent to $185 million.
For the full year, the company earned $58 million, or 12 cents per share, on $9.58 billion in revenue. That compared with $1.12 billion, or $2.04 per share, for all of 2010.
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