Dallas-based Tenet Healthcare reported a net loss of $61 million, or 61 cents a share, for the second quarter after it was docked $136 million in after-tax impairments, restructuring charges, acquisition-related costs and litigation and investigation costs.
This loss has widened compared to the Q2 net loss in 2014 of $26 million, or 27 cents per share. Over the past six months, the company's net operating loss totaled $14 million.
Excluding the one-time charges and costs, per-share earnings from continuing operations exceeded expectations in Q2, rising from 17 cents in the prior quarter to 75 cents. Tenet had forecasted an increase of 15 cents to 64 cents.
Revenue was up 11.2 percent in the three-month period ending June 30, to $4.49 billion. This tops last year's Q2 revenue of $4.04 billion. Year-to-date, Tenet has brought in $8.9 billion in net operating revenue, a 12 percent increase from last year's earnings at this time.
The majority of this growth stems from an increase in same-hospital adjusted patient admissions, which are up 2.3 percent compared to the Q2 2014. The company also saw some changes due to health insurance coverage under the Affordable Care Act. Including non-expansion states, same-hospital uninsured plus charity admissions decreased by 4.9 percent. In the six states that expanded Medicaid, same-hospital uninsured plus charity admissions declined by 31.5 percent.
Adjusted EBITDA spiked to $568 million in the second quarter, a 23.5 percent increase from the $460 million in the same period in 2014. This is due in part to the $16 million of adjusted EBITDA from the health system's acquisition of United Surgical Partners International and Aspen Healthcare, which closed in June.
"This was another strong quarter for Tenet with EBITDA that exceeded our expectations," Trevor Fetter, Tenet chairman and CEO, said in a statement. "We continued to focus on aggressive implementation of our strategy to improve care delivery and more closely align our business with key trends shaping the healthcare system. In our hospital business, we made progress on multiple strategic partnerships that will help us achieve leadership positions in our markets, as well as plans to divest facilities."
In the third quarter, Tenet is expecting $4.65 billion to $4.85 billion in net operating revenue, and forecasts it will generate $18.1 billion to $18.5 billion in net operating revenue for the entire fiscal year. Its adjusted per-share earnings estimate for the year ranges from $1.32 to $2.21.
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