Dallas-based Tenet Healthcare reported an operating income of $1.1 billion in the third quarter, nearly double the $568 million operating income reported in the third quarter of 2023, according to financial documents published Oct. 29.
"Our businesses continue to produce strong results and generate robust free cash flow with same store revenue growth and profitability well above our expectations due to the focused execution of our strategy and disciplined operations," Chair and CEO Saum Sutaria, MD, said. "We have furthered our portfolio transformation and are well-positioned to deliver enhanced value to our patients, physician partners and shareholders."
Five things to know:
1. Tenet received $348 million in the third quarter of 2024 from the sale of certain facilities. After accounting for interest expenses and nonoperating activities, Tenet ended the period with a net income of $472 million, compared to $101 million in the same period last year.
2. Third-quarter revenue increased 1.1% year over year to $5.12 billion. Under expenses, labor costs decreased 3.1% year over year to $2.21 billion while supply costs grew by 0.5% to $881 million.
3. Tenet continues to transform its portfolio into a more value-based care enterprise with a leading specialty care platform. In the first quarter, the company sold nine hospitals in California and South Carolina for a total of $3.9 billion. It also sold its majority stake in five more Alabama hospitals for $910 million, effective Sept. 30.
4. Tenet's outlook for full-year 2024 net cash provided by operating activities and free cash flow now reflects the anticipated payment of about $175 million in income taxes, primarily related to the net gain on the sale of the Alabama hospitals.
5. Tenet comprises 52 acute care hospitals, about 640 outpatient centers and 100,000 employees, according to its website. Tenet’s ambulatory business segment, United Surgical Partners International, has interests in 520 ASCs and 24 surgical hospitals across 37 states.