Hospital operator Tenet Healthcare Corp. said Thursday it expects to post profit of about $5 million for the 2008 fourth quarter, reversing a year-ago loss of $75 million, but said it can't yet predict how 2009 will play out
In reporting preliminary results for the three-month period, Tenet said patient admissions "held up reasonably well." Same-hospital admissions, or inpatient admissions at hospitals open at least one year, fell 0.2 percent. But including outpatient procedures, admissions at those facilities rose 1.6 percent, and surgical procedures also increased.
Same-hospital revenue grew 5 percent to $2.17 billion.
Tenet plans to report its full results in late February, at which time it said it will comment on its 2009 outlook. The company has forecast a profit of $1 billion for the year, but more recently said it will be difficult to achieve that target.
"There is a lack of visibility into demand for healthcare services, payer and patient mix, and other key variables," Chief Executive Trevor Fetter said in a statement.
Separately, Tenet said it is offering to swap up to $1.6 billion worth of notes due in 2011 and 2012 for new debt which comes due in 2014 and 2019, in a bid to postpone debt obligations and preserve cash amid a tight credit environment.
The company said the new notes will be guaranteed by the capital stock and other ownership interests of certain Tenet subsidiaries.
"In these difficult and uncertain times, we believe it has become increasingly prudent to implement strategies designed to enhance our financial flexibility and mitigate near-term profitability pressures," Fetter said.
The company, which operates hospitals and related services in 12 states, said paying admissions at older hospitals edged up 0.1 percent during the fourth quarter, and paying outpatient admissions increased 0.9 percent. Commercial insurance admissions were down 3 percent at those hospitals, which was a slightly smaller decline than Tenet reported in the third quarter.
Same-hospital revenue from commercial managed care rose 7 percent to $872 million, and "controllable" operating expenses, including salaries, wages, benefits and supplies, rose just 2 percent to $1.81 billion. But bad debt, or patients' bills unlikely to be repaid, grew 23 percent to $163 million.
For the full year, Tenet is forecasting profit of about $63 million, and adjusted profit before taxes, interest and other costs of $730 million -- within its revised range of $700 million to $750 million.
In morning trading, Tenet shares gained 6 cents to $1.30. The stock, which peaked a $6.88 back in April, is slowing recovering since plunging as low as 99 cents last month.
via yahoo
In reporting preliminary results for the three-month period, Tenet said patient admissions "held up reasonably well." Same-hospital admissions, or inpatient admissions at hospitals open at least one year, fell 0.2 percent. But including outpatient procedures, admissions at those facilities rose 1.6 percent, and surgical procedures also increased.
Same-hospital revenue grew 5 percent to $2.17 billion.
Tenet plans to report its full results in late February, at which time it said it will comment on its 2009 outlook. The company has forecast a profit of $1 billion for the year, but more recently said it will be difficult to achieve that target.
"There is a lack of visibility into demand for healthcare services, payer and patient mix, and other key variables," Chief Executive Trevor Fetter said in a statement.
Separately, Tenet said it is offering to swap up to $1.6 billion worth of notes due in 2011 and 2012 for new debt which comes due in 2014 and 2019, in a bid to postpone debt obligations and preserve cash amid a tight credit environment.
The company said the new notes will be guaranteed by the capital stock and other ownership interests of certain Tenet subsidiaries.
"In these difficult and uncertain times, we believe it has become increasingly prudent to implement strategies designed to enhance our financial flexibility and mitigate near-term profitability pressures," Fetter said.
The company, which operates hospitals and related services in 12 states, said paying admissions at older hospitals edged up 0.1 percent during the fourth quarter, and paying outpatient admissions increased 0.9 percent. Commercial insurance admissions were down 3 percent at those hospitals, which was a slightly smaller decline than Tenet reported in the third quarter.
Same-hospital revenue from commercial managed care rose 7 percent to $872 million, and "controllable" operating expenses, including salaries, wages, benefits and supplies, rose just 2 percent to $1.81 billion. But bad debt, or patients' bills unlikely to be repaid, grew 23 percent to $163 million.
For the full year, Tenet is forecasting profit of about $63 million, and adjusted profit before taxes, interest and other costs of $730 million -- within its revised range of $700 million to $750 million.
In morning trading, Tenet shares gained 6 cents to $1.30. The stock, which peaked a $6.88 back in April, is slowing recovering since plunging as low as 99 cents last month.
via yahoo
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