DOW JONES NEWSWIRES
Tenet Healthcare Corp.'s (THC) second-quarter loss was unchanged
from a year earlier, as the hospital operator faced weaker
admissions.
The hospital industry is facing growing numbers of uninsured
patients and unpaid patient bills. But last week, when Tenet raised
its 2009 earnings outlook, it cited a "very strong" first half and
cost controls, saying the industry may be benefiting more than
previously expected from reined-in costs.
Tenet also could be continuing to regain its footing after
settling government probes in 2006 over pricing plans. It has
changed management, shed hospitals and made improvements that
earned it good-quality ratings from the Department of Health and
Human Services.
Tenet's loss was flat from a year earlier $15 million, or 3
cents a share, matching its July view.
Net operating revenue rose 5.5% to $2.23 billion, beating the
company's July forecast for an increase of 4.5% to $2.21 billion.
That view was below Wall Street's views at the time.
Last week, Tenet said pricing gains and growth in its outpatient
business led to higher results for the quarter. It also cited
"growing confidence that effective cost control and strengthening
outpatient volumes can mitigate the impacts the company is seeing
from a weak economy," namely weak admissions of commercially
insured patients.
Shares closed Monday at $4.20 and were inactive premarket. The
stock has more than tripled this year but remains down one-third
from a year earlier.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com