Dallas-based Tenet Healthcare saw its net revenue increase in the fourth quarter of 2015, but including the results of both continuing and discontinued operations, the for-profit hospital operator ended the period with a net loss.
Here are six things to know about Tenet's financial and operating results for the fourth quarter.
1. The for-profit hospital operator said revenue rose to $5.03 billion, up 12.6 percent from the same period a year earlier.
2. Tenet, which operates 84 acute care hospitals across the nation, saw adjusted admissions increase 0.3 percent and revenue per adjusted admission increase 3.2 percent in the fourth quarter of 2015 compared to the year prior.
3. Through its subsidiaries, partnerships and joint ventures, Tenet operates 20 short-stay surgical hospital and more than 470 outpatient centers. On a same-facility basis, cases in Tenet's ambulatory care segment increased 6.9 percent in the fourth quarter of 2015.
4. Tenet reported a net loss of $97 million in the fourth quarter of 2015. That's compared to a net profit of $61 million in the same period of the year prior. For full-year 2015, Tenet reported a net loss of $140 million.
5. Tenet's losses include a $218 million increase in litigation reserves. The for-profit hospital operator previously disclosed it is the subject of a criminal investigation by the Department of Justice. The criminal lawsuit arose out of a civil lawsuit filed under the qui tam provision of the False Claims Act. The lawsuit alleges four Tenet hospitals paid illegal kickbacks to clinics that referred undocumented pregnant patients to them for Medicaid-paid deliveries. Undocumented patients are not eligible for regular Medicaid coverage. However, they typically qualify for emergency medical assistance when they deliver their babies. Tenet offered to pay $238 million to settle the criminal investigation and civil litigation Feb. 18, according to a recent Securities and Exchange Commission filing.
6. Commenting on the hospital operator's most-recent financial results, Tenet Chairman and CEO Trevor Fetter said, "Similar to our results in the third quarter, we experienced pressure on lower acuity inpatient hospital admissions and continued to drive increases in higher-acuity admissions." Tenet expects to deliver revenue in the range of $18.8 billion to $19.2 billion during 2016.
More articles on healthcare finance:
Partners HealthCare earnings dragged down by Epic transition
CHS reports surprising $83M loss as admissions fall
8 latest CFO moves at hospitals, health systems