Boston, MA 02/27/2013 (wallstreetpr) – The third largest hospital company in the U.S, Tenet Healthcare Corporation (NYSE:THC) reported its third quarter income that has been helped by higher admissions and its 2013 forecast has been reconfirmed. Dallas-based Tenet said that its $336 million adjusted earning beat its own projections as well as all analyst forecasts. These earnings include taxes, interest, amortization and depreciation. Tenet Healthcare Corporation (NYSE:THC)’s earnings with the exclusion of one-time items amounted to 52 cents per share which was 15 cents lower than an average of estimates that had been drawn by close to 19 leading market analysts.
Outpatient strategy pays off
Tenet Healthcare Corporation (NYSE:THC) operates 49 hospitals across 10 states and runs over 100 outpatient centers. It had doubled its freestanding outpatient centers over the past four years. The company has seen an increase in the number of its patients in the 117 centers that it operates. Its outpatient visits saw an increase of 7.3 percent while its adjusted admissions rose by 2.9 percent. This led to revenue of $2.33 billion which was an increase of 7.3 percent. The quarter has been a fairly good one though not particularly outstanding and the company’s outpatient strategy has paid off is what one prominent analyst is quoted to have said. The
Tenet Healthcare Corporation (NYSE:THC) shares have risen by 64 percent over the last 12 months.
Reconfirmation of forecast
Tenet Healthcare Corporation (NYSE:THC) has reiterated its forecast for 2013 and said that it’s adjusted EBITDA to $1.42 billion from $1.32 billion earlier. Analysts have said that is good to see the company reaffirming its guidance. The company owes the current quarter growth to charity and uninsured admissions which had risen by 1.1 percent. These had caused an increased level of bad debt expenses. The country had seen an increased incidence of Influenza in December and the season had come in a month before its does every year. The largest U.S hospital companies that are publicly traded, HCA Holdings Inc (NYSE:HCA) and Community Health Systems (NYSE:CYH) also reported that the quarter had brought in higher admissions caused by the flu.
Overhaul will haul the company upwards
Rick Black, a Tenet Healthcare Corporation (NYSE:THC) spokesperson said that “investigation and litigation costs” as well as “impairments” had hurt the adjusted per-share result as had the depreciation expenses. The company is well ahead of schedule with its installations of modern technology systems at its hospitals, making the depreciation costs “good news” is what he added. The Federal healthcare overhaul will come into effect next year and an estimated 27 million Americans who would otherwise have been uninsured will be covered under the overhaul. The company covers several states that have a large number of patients without insurance cover and will definitely benefit from the overhaul. Its investors are focusing entirely on 2014.
Shares of Tenet Healthcare Corporation (NYSE:THC) went up by 0.64% to close at $37.87
Shares of HCA Holdings Inc (NYSE:HCA) went up by 1.22% to close at $35.64
Shares of Community Health Systems (NYSE:CYH) went up by 0.75% to close at $40.38