Tenet Expects to Beat Q4 Estimates, Cites Admission Increase
Santa Barbara-based Tenet Healthcare Corp. yesterday said it expects to beat analysts' fourth-quarter estimates because of increased hospital admissions, Bloomberg News/Los Angeles Times reports. The nation's second-largest hospital chain said it will report higher profit from operations than the 61 cents-per-share predicted by analysts. Tenet officials said admissions at hospitals the chain has owned for more than one year have increased 5.2%. In addition, the hospital chain said it has controlled costs, had lower interest expenses and has received higher Medicare reimbursements under the "giveback" package passed by Congress last year. Merrill Lynch & Co. analyst Albert Rice said that Tenet is also planning five new acquisitions that would add nearly $500 million in revenue for the next fiscal year. Tenet shares rose $2.20 yesterday to close at $49.82 on the New York Stock Exchange; the company's shares have almost doubled in price over the past 12 months (Bloomberg News/Los Angeles Times, 6/13).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.